Recent research conducted by the Resolution Foundation suggests that Millennials are set to enjoy the biggest inheritance boom of any post-war generation. I was kindly invited on to Andrew Castle’s LBC breakfast show this morning to discuss the findings, and what benefits this might bring for those currently in their 20s and 30s.
Inheritance Boom
What’s fascinating about the research is that it recognises that due to an increase in life expectancies, the most common age at which Millennials will inherit from their parents will be 61. This, of course, is great for those who are worried how they’ll pay for their children’s university fees, and what they’ll do for a pension when they retire - it may even allow an early retirement in some cases.
The research notes:
“The Foundation’s analysis finds that the large sums of wealth accumulated by older generations will provide a major boost to younger generations’ wealth accumulation and living standards in years to come. Inheritances are set to more than double over the next two decades and peak in 2035, as the generally high-wealth baby boomers – who currently hold more than half of Britain’s wealth – progress through old age.”
Can’t Come Soon Enough
However, for many, this financial support will come too late for what Millennials currently struggle with the most - purchasing their first property. I have noticed over the years that clients in their 20s and early 30s put a lot of pressure on themselves to get on to the housing ladder, as they struggle to save enough for a deposit. Prices are increasing but wages aren’t.
It’s also well documented that still living at home with parents, or flat-sharing, can contribute to a Quarter Life Crisis because the individual craves independence and the opportunity to lead an adult life, but is not able to financially. They also compare themselves to what their parents were able to secure at their age - a house, marriage, children, steady wage and pension, stable career - and sometimes feel inadequate, as they are often nowhere near the same things at the same age. No wonder Millennials are becoming known as the Peter Pan Generation - there’s little opportunity to ‘grow up’ and become financially independent adults.
Radio Interview: The Blame Game
This was the second time I’ve been interviewed for LBC. Andrew Castle was very friendly. However, it was a shame that the topic turned in to a bit of a blame game - Millennials versus Baby Boomers. When it comes to topics related to Millennials, it often does. Both generations think they are/were worse off. Andrew asked whether perhaps Millennial expectations were too high, that perhaps in this day and age, it’s not always realistic to expect to own a property etc.
I prefer to stay with the original focus of the interview - that Millennials are set to benefit from the biggest inheritance boom of any post-war generation. That’s a good thing, I’d say. I look forward to turning 61!
Alice coaches those who want to change career but don’t know what they want to do instead. She offers Career Coaching designed to help graduates, early to mid-level career-changers, and parents returning to work gain a clear vision of what career is right for them, and how to achieve it. She is also an accredited Coach Supervisor, and host of The Career Change Diaries podcast.
