Inheritances and inequality across and within generations
- Document type
- Hood, Andrew; Joyce, Robert
- Institute for Fiscal Studies
- Date of publication
- 5 January 2017
- IFS Briefing Note; BN192
- Older Adults, Children and Young People, Poverty Alleviation Welfare Benefits and Financial Inclusion
- Social welfare
- Material type
Download (453KB )
This briefing highlights the importance of inherited wealth and how it may play a more important role in determining the lifetime economic resources of younger generations.
- Elderly households now have much more wealth than households of the same age a decade ago.
- An increased proportion of elderly households intend to leave a large inheritance.
- Younger generations are much more likely to expect to receive an inheritance than their predecessors.
Today’s young adults will find it harder to accumulate wealth of their own than previous generations did.
This is due to the sharp fall in homeownership, the dramatic decline of defined benefit pensions in the private sector, and the stagnation in household incomes.
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