The Generational Wealth Gap In Short

Young workers face a triple pressure: soaring housing costs, student debt, and reduced pension security – the H.E.P. challenge.

Housing affordability has halved in a generation, with average deposits of £59,000 delaying home ownership.

Student loans now average £45,600, acting like an extra tax and eroding savings potential.

Retirement risk has shifted to individuals, with defined contribution pensions replacing more generous final salary schemes.

The demographic time bomb: by 2050, only 1.5 workers will support each retiree, straining public finances and the state pension.

A silver lining: £5.5 trillion in intergenerational wealth transfer is expected in the UK over the next 30 years.

Employers can act by enhancing pensions, offering salary sacrifice, and providing financial education.

System reform is needed to tackle affordability, tax barriers, and financial literacy.

WPD supports employers in navigating these pressures through strategic pension planning and employee wellbeing programmes.