Children of the 60s and 70s face meagre retirement

A new report has revealed the generation that came of age under Margaret Thatcher have not saved enough to be better off in retirement than their predecessors. 

The survey from the Institute for Fiscal Studies has shown that whilst those in their forties and fifties are doing better than young people and recent graduates, compared to the post-war baby boomers they are failing to do so well.

The report’s authors Andrew Hood and Robert Joyce found that Thatcher’s children had

 “…no higher take home income; have saved no more previous take home income; were less likely to own their own homes; likely to have lower pension wealth; and would tend to find that their state pensions replaced a smaller proportion of higher earnings.”

When they started their careers, those born in the 60s and 70s had higher take home real incomes than the previous generation.  But the IFS report has shown that the majority spent those gains and had higher early life living standards than their parents.

Fortunately for those who haven’t put enough aside, the report showed that prospects for inheritance were at an all time high.  Although not all could rely on massive inheritance windfalls, where individuals did expect them they were also more likely to have partners with similar expectations, creating a ‘double bonus’ for some.

The reports findings added weight to the view that today’s pensioners were living in a ‘golden age’ which wouldn’t be repeated.  It also hints at the prospect of a replay of the 1980s for many approaching their middle years - limited income growth for most and rapidly rising pensioner inequality.

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