People born in the 1960s and 1970s are likely to become the first generation since World War II who will be worse off than their parents in retirement, a new study has warned.
When compared with those born a decade earlier at the same age, this group have no higher take-home income and have saved no more of their previous take-home income.
They are also less likely to own a home, probably have lower private pension wealth, and will tend to find that their state pensions replace a smaller proportion of previous earnings, according to a report by the Institute for Fiscal Studies (IFS) economic think-tank.
Inherited wealth looks like the only major factor that could act to make individuals born in the 1960s and 1970s better off in retirement than their predecessors, on average, the IFS said.
If people's expectations are correct, then receipt of inheritances will be far higher among those born in the 1960s and the 1970s than among those born earlier.
Of those born in the early 1940s, 28% expect to receive an inheritance, compared with 70% of those born in thelate 1970s.
But expected inheritances are unevenly distributed. Those who are already wealthiest expect to receive the most inheritance in future.
For example, among those born in the mid-1970s, 35% of the wealthiest third expect to receive an inheritance worth at least £100,000, compared with just 12% of the least wealthy third.
In addition, experts cautioned that in many cases old-age care costs will eat up much or all of the money that pensioners had hoped to leave their children despite a Government pledge to introduce a £72,000 cap on the bills.
Labour has disputed this care cap, saying in reality it will be much higher, with those needing to be looked after in retirement forced to pay up to £150,000.
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