Bridging the wealth divide for future generations
| The generational wealth divide is widening, with younger generations holding only 4% of UK wealth. | Nearly half of UK adults worry they won’t save enough for a secure retirement. | Proactive wealth planning is essential to support future generations and reduce financial insecurity. |
We provide and receive support across generations throughout our lives, whether within our families or society as a whole. This intergenerational contract ensures mutual support based on varying needs and resources. However, evolving economic conditions and demographic shifts are putting increasing pressure on this delicate balance.
Furthermore, the UK’s population is ageing at a fast pace. By 2040, almost a quarter of the population will be 65 or older, up from just under one in five today1.
Growing divide
The gap in wealth accumulation between generations is stark. Over the past two decades, UK household wealth has doubled relative to incomes, yet older generations have reaped the greatest benefits. Between 2010-11 and 2019-20, median total wealth for those aged 65 to 69 surged by 46% (£112,597), while those in their late 30s saw only a modest 9% increase (£6,751). Today, younger generations hold just 4% of total UK wealth, a decline from 7.5% in 2010. Despite this imbalance, seven in ten adults receive no financial support from their families.
Growing concerns about financial security
A recent survey2 reveals increasing anxiety about financial stability, with nearly half (47%) of UK adults worried they won’t have enough saved for retirement – a concern that rises to 60% among those aged 25 to 49. Additionally, almost a third (29%) fear they won’t have family members to rely on for support, highlighting the importance of planning how wealth is shared across generations.
Protecting your family’s financial future
If you’re thinking about how to pass on wealth and support your loved ones, we’re here to help. By planning ahead and exploring effective wealth transfer strategies, you can ensure financial security for future generations. Making informed decisions today can create lasting stability for the years to come.
1&2 ILC 2025
It is important to take professional advice before making any decision relating to your personal finances. Information within this document is based on our current understanding and can be subject to change without notice and the accuracy and completeness of the information cannot be guaranteed. It does not provide individual tailored investment advice and is for guidance only. Some rules may vary in different parts of the UK.