New research suggests that, in today’s world of falling home ownership and stagnant wages, Britain’s younger generation are more reliant than ever before on receiving a substantial inheritance from their families in order to achieve future wealth and ambitions.
The study, which was carried out by the Institute of Fiscal Studies (IFS), shed light on a rising trend in inheritance expectations across younger generations.
An IFS post-study report read: “Of those born in the 1970s, 75 per cent either have received or expect to receive an inheritance, compared with 68 per cent of those born in the 1960s, 61 per cent of those born in the 1950s, 55 per cent of those born in the 1940s and less than 40 per cent of those born in the 1930s.”
Andrew Hood, Senior Research Economist at IFS, added: “The wealth of younger generations looks set to depend more on who their parents are than was the case for older generations.
“Today’s elderly have much more wealth to leave to their children than their predecessors did, primarily as the result of higher homeownership rates and rising house prices.
“At the same time, today’s young adults will find it harder to accumulate wealth of their own than previous generations did, due to the sharp fall in homeownership for that group, the dramatic decline of defined benefit pensions in the private sector and the stagnation in their incomes”.