Pensions - Articles - Aegon comment on intergenerational transfer data from ONS

 Steven Cameron, Pensions Director at Aegon said: “The latest ONS figures paint a mixed picture of the way that wealth is distributed across generations in the UK with a clear divide between the younger and older age groups. Those aged 55 – 64, many of whom will have benefited from gold plated defined benefit pensions are also the most likely to receive an inheritance from parents and older relatives, which on average will also be the largest in size of inheritance.

 This group are also the most likely hold on to any money they have inherited by saving or investing. At the other end of the age spectrum, those in the 25 - 34 age bracket are most likely to receive a gift or loan from a family member, but the sums are relatively low, with the average value of these gifts at just £2,000. It’s positive to see that to some extent the younger generation are also benefitting from the transfer of wealth, but the benefits to younger generations of intergenerational transfer of funds should not be underestimated. This can play a vital role in kick-starting positive savings habits among the next generation, or help them to get on the housing ladder.”