Wealth gap between young and old Brits passes £500,000

The wealth gap between Britain’s twentysomethings and those in their sixties has passed £500,000, according to new analysis from the Resolution Foundation.

The think tank found that the difference in wealth between the two age groups now stands at just over £500,000 in real terms, up from just under £300,000 in 2006-08 – a rise of around 70%.

The widening divide has been driven by gains concentrated among older households.

The Resolution Foundation found that younger baby boomers, who were in their early sixties in 2020-22, held around £210,000 more in total wealth than those who were the same age in 2006-08.

Younger generations have seen far smaller gains. Those aged 20 to 24 in 2020-22 held only around £13,000 more in wealth than their counterparts of 15 years earlier, while those aged 25 to 29 held just under £20,000 more.

The think tank said the figures showed that living cheaply with parents, while in theory creating an opportunity for young people to save for a deposit, was not substantially shifting the picture.

The age gradient on wealth has grown steeper over the past two decades, with the largest gains accruing to the oldest age groups rather than to young adults staying at home.

The cost of housing

Rising house prices have compounded the problem.

The Resolution Foundation noted that real-terms UK house prices rose from £238,560 in January 2011 to £272,700 in January 2026, an increase of £34,140 or 14%, meaning the modest wealth gains made by young people may not be enough to get onto the property ladder.

The analysis found that the ability to buy a home is increasingly determined by inheritance and parental support rather than personal saving.

Among 20 to 29-year-olds in 2018-20, those on the highest incomes were six percentage points more likely than those on the lowest to have received an inheritance or gift worth £1,000 or more.

The Resolution Foundation said children of wealthier parents not only received larger financial gifts, and received them earlier, but also tended to earn more, save more and be more highly educated.

It warned that home ownership was becoming bound up with family wealth rather than personal accumulation.

The think tank said that while cohort-by-cohort income progress had returned for young people, gains in the labour market could not compensate for widening wealth gaps.

It called for sustained action across housing, employment and wages to prevent recent progress from stalling.

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