The recently retired are now richer than under-45s for the first time in history, Resolution Foundation report finds

Lynsey Barber
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Generous pensions and investments in property mean that recent retirees are now a collectively wealthier generation than the under-45s for the first time in history.

New research reveals those aged between 65 and 74 hold 19 per cent of the UK's wealth, while it now stands at 16 per cent for those aged under 45 despite the younger population out-numbering retirees two to one.

The relative luck of the baby boomer generation is continuing into retirement, but for younger generations, including their kids, it's a different story and the financial crisis has taken its toll.

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Since 2006 wealth of the older age group has steadily risen from a 17 per cent share, while for the younger generation it has steadily declined from 20 per cent, resulting in retirees' over taking under-45s.

"The stark generational wealth divide has grown since the financial crash, as a result of the recently retired being relatively protected in a downturn where house prices had a swift recovery, while real wages took six years to start increasing again," according to the report from the Resolution Foundation, which is based on official figures from the Office of National Statistics.

Former Conservative minister and head of the think tank, David Willetts, will today make a speech calling for action to boost housing supply and address the growing divide between the generations.