Throughout our lives, we both give and receive support across generations, whether within our families or as part of society. This concept, known as the intergenerational contract, plays an important role in intergenerational wealth transfer, ensuring that different generations support each other based on their needs and resources. However, with shifting economic conditions and demographic changes, this balance is increasingly under strain.
In addition, the UK’s population is ageing rapidly. By 2040, nearly a quarter of people will be aged 65 or older, compared to just under one in five today5.
Striking disparities
The disparities in wealth accumulation between generations are striking and have important implications for intergenerational wealth transfer. Over the last two decades, UK household wealth has doubled relative to incomes, but older generations have benefited disproportionately. Between 2010/2011 and 2019/20, median total wealth for those aged 65 to 69 rose by 46% (£112,597), while those in their late 30s saw only a 9% increase (£6,751). Today, younger generations hold just 4% of total UK wealth, down from 7.5% in 2010. Despite this, seven in ten adults receive no financial support from their families.
Concerns about financial security
A recent survey6 highlights growing concerns about financial security. Almost half (47%) of UK adults worry they won’t have enough saved for retirement, rising to 60% among those aged 25 to 49.
With nearly a third (29%) of people fearing they won’t have family members to rely on for support, it is crucial to think about how intergenerational wealth transfer may work in practice for families.
Secure your family’s financial future
If you’re concerned about intergenerational wealth and intergenerational wealth transfer, and how best to support your loved ones, talk to us about strategies for effective wealth transfer and long-term financial planning. By making informed decisions now, you can help create a more secure financial future for the generations to come.
Get in touch
Thinking about intergenerational wealth transfer can feel complex, particularly as family circumstances, tax rules and long-term goals evolve. Whether you’re considering how to support children or grandchildren, planning for later life, or simply want to understand your options, we’re here to help.
Our advisers can provide clear, practical guidance to help you plan with confidence and take a long-term view of your family’s finances.
We’re based in Eastbourne, East Sussex, and work with clients across the South East, including Brighton, Lewes, Hastings, Uckfield and Tunbridge Wells.
You can also explore our other blogs and watch our short videos for more insights on financial planning and wealth management, or check out our VoucherFor reviews to see what our clients say about working with us.
Get in touch to arrange a no-obligation chat with one of our experienced financial advisers.
5&6ILC 2025
The value of investments can go down as well as up and you may not get back the full amount you invested. The past is not a guide to future performance and past performance may not necessarily be repeated.
It is important to take professional advice before making any decision relating to your personal finances. Information within this blog is based on our current understanding of taxation and can be subject to change in future.
It does not provide individual tailored investment advice and is for guidance only. Some rules may vary in different parts of the UK; please ask for details. We cannot assume legal liability for any errors or omissions it might contain. Levels and bases of, and reliefs from, taxation are those currently applying or proposed and are subject to change; their value depends on the individual circumstances of the investor.
The value of investments can go down as well as up and you may not get back the full amount you invested. The past is not a guide to future performance and past performance may not necessarily be repeated.
If you withdraw from an investment in the early years, you may not get back the full amount you invested. Changes in the rates of exchange may have an adverse effect on the value or price of an investment in sterling terms if it is denominated in a foreign currency. Taxation depends on individual circumstances as well as tax law and HMRC practice which can change.
The information contained within the blog is for information purposes only and does not constitute financial advice.
The purpose of the blog is to provide technical and general guidance and should not be interpreted as a personal recommendation or advice.
