A think-tank says that a landmark study reveals growing absolute wealth inequality and raised questions about the outsize impact of inheritance on social mobility.
The Office for National Statistics data exposed a big gap between the oldest and wealthiest in society, who are likely to inherit the largest sums, and the youngest and those on lower salaries.
The ONS found that between 2014 and 2016, those aged 54-64 were the most likely to have inherited £1,000 or more in the past two years, compared with 4 per cent of those aged between 25-34. The median inheritance received by those in the top personal wealth quintile stood at £35,000, compared with £3,000 for those in the lowest wealth quintile.
Tom Stevenson, investment director at Fidelity International, an asset manager, said: “Unfortunately it is clear from the ONS’s study that money has a tendency to fall on the biggest pile. If you are looking at ways to reduce wealth inequality then inheritance is not the answer.”
The amount of money passed on through inheritance each year has doubled over the past two decades — and will more than double again over the next 20 years as baby boomers pass away. According to the Resolution Foundation, UK residents stand to inherit £200bn in 2035, up from £90bn in 2014/15.
https://www.ft.com/content/e4af8308-dc37-11e8-8f50-cbae5495d92b
The Office for National Statistics data exposed a big gap between the oldest and wealthiest in society, who are likely to inherit the largest sums, and the youngest and those on lower salaries.
The ONS found that between 2014 and 2016, those aged 54-64 were the most likely to have inherited £1,000 or more in the past two years, compared with 4 per cent of those aged between 25-34. The median inheritance received by those in the top personal wealth quintile stood at £35,000, compared with £3,000 for those in the lowest wealth quintile.
Tom Stevenson, investment director at Fidelity International, an asset manager, said: “Unfortunately it is clear from the ONS’s study that money has a tendency to fall on the biggest pile. If you are looking at ways to reduce wealth inequality then inheritance is not the answer.”
The amount of money passed on through inheritance each year has doubled over the past two decades — and will more than double again over the next 20 years as baby boomers pass away. According to the Resolution Foundation, UK residents stand to inherit £200bn in 2035, up from £90bn in 2014/15.
https://www.ft.com/content/e4af8308-dc37-11e8-8f50-cbae5495d92b
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