The over 50s generation holds three-quarters of the household wealth in the United Kingdom. Personal wealth of the over 50s has reached a massive £5 trillion in the past five years.
Abbey predict that this generation will become even more influential. They hold 60 per cent of all savings and are responsible for over 40 per cent of demand.
Our view
This wealth has mainly been generated by increases in house prices, as most people own their own homes. This age group also tend to have a final salary pension schemes, which would also contribute to their wealth. Pension plans and house values will help to make their retirement more financially secure. We agree that ‘pensioner power’ will have a stronger sway with politicians as time progresses.