Baby boomers leave record wealth

27 February 2006

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Over the next 15 years, it’s expected that as much as £360bn will be passed on through inheritance, in the form of property.

New research from the Halifax, suggests that the value of assets left in wills will double, from £14bn in 2002, to as much as £32bn, in 2020 as asset rich baby boomers pass on their homes to their children.

More baby boomers own their property than any other generation, and the number of families who own their home, has continued to grow since the birth of the baby boomers in the 1940s.

49% of all assets left behind in 2002 were property, and the figure is ecpected to grow over the next 15 years, to as much as 60%.

It’s hoped that the large amount of inheritance tax that this is likely to create will go some way towards closing the pensions gap, however, this does not take into account the rising cost of residential care, which will eat into housing wealth or inheritance tax.

Ray Milne, managing director of Halifax Financial Services, remained cautious over future retirement wealth.

"The amount of housing wealth inherited is expected to double in 15 years reflecting demographic changes and the passing away of the first mass generation of homeowners.

"Housing wealth will undoubtedly assist the next generation to provide for their pension. But it does not, by any means, reduce the need to save for the future including making provision for retirement."

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