Young ‘to be poorer than parents at every stage of life’


Worse off than their parents? Young people will not be as rich as earlier generation says the IFS.

Young people are on track to be poorer than their parents at every stage of their lives, according to a new report.

The study, by the Institute for Fiscal Studies (IFS), added that households actually grew richer during the financial crisis.
But it said that the reason for the growth between 2006-12 was the increase in pension values over the period.

And the slow rate of growth in overall wealth suggested that young people would lag behind earlier generations.

Dave Innes, a research economist at the IFS and an author of the report said: “Despite the financial crisis, household wealth on average increased in real terms over the late 2000s, driven by increases in private pension entitlements.”