One in five British baby boomers are millionaires, according to analysis of official data.
Baby boomers – those born between the end of the Second World War and the mid-1950s – have seen their wealth massively grow.
In 2006, the over 65s owned 28% of the UK’s household wealth – increasing to 36% a decade later, analysis of Office for National Statistics Wealth and Assets data by financial firm Netwealth shows.
The over 65s are also the age group most likely to experience a sharp growth in their fortunes, with household wealth soaring by 96%.
The report suggests baby boomers are richer than other age groups because they have benefitted from rising house prices, large inheritances and gold-plated final salary pensions, says Netwealth founder and CEO Charlotte Ransom.
Wealth disparity between generations
Meanwhile, younger people have fared less well.
The 35 to 44 year old age group saw their wealth drop by 5% over the same 10-year period, while those aged 25 to 34 saw a 2% fall.
Although household wealth has increased by 51%, the under 55s have only seen their share climb by 9% compared with the 96% enjoyed by the over 65s.
Financial experts say this wealth disparity has given rise to the Bank of Mum and Dad as Baby Boomers filter their wealth down to help younger family members financially.
Research by Kings Court Trust and the Centre for Economics and Business Research reckons financial transfers between generations worth £5.5 trillion will take place in the UK over the next 30 years.
This will make inheritance tax planning vital for families who need to label these transfers as gifts or loans and if they are loans, detailing how they are repaid.