Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

The wealth of our nation: who owns what in 21st century Britain

673 views

Published on

Conor D'Arcy's slides from our event.

Published in: News & Politics
  • Be the first to comment

  • Be the first to like this

The wealth of our nation: who owns what in 21st century Britain

  1. 1. RF #wealthRF The generation of wealth: Asset accumulation across & within cohorts
  2. 2. RF #wealthRF Session One John Hills, Director of the International Inequalities Institute at the LSE Gemma Tetlow, Economics Correspondent at the Financial Times Conor D’Arcy, Policy Analyst at the Resolution Foundation Torsten Bell, Director of the Resolution Foundation (chair) Intergencommission.org 2
  3. 3. RF #wealthRF The generation of wealth: Asset accumulation across & within cohorts Conor D’Arcy June 2017 @conortdarcy / @resfoundation
  4. 4. RF #wealthRF Why does wealth matter? • Supports short-term living standards • Crucial to living standards in retirement • Inequality a concern too • Signs that younger cohorts are not building up wealth Intergencommission.org 4
  5. 5. RF #wealthRF An overview of wealth
  6. 6. RF #wealthRF Britain is wealthier than ever, with property and pensions the biggest components Intergencommission.org 6 Total wealth: 2012-14 (nominal values), UK
  7. 7. RF #wealthRF Wealth inequality is high and rising after long term falls Intergencommission.org 7 Gini coefficient for wealth, total net family wealth per adult
  8. 8. RF #wealthRF Massive geographic inequalities too Intergencommission.org 8 Mean and median total net family wealth per adult by country/region: 2012-14
  9. 9. RF #wealthRF Wealth across and within the generations
  10. 10. RF #wealthRF The old have more wealth but key issue is generational progress Intergencommission.org 10 Median family total net wealth per adult, by age: 2012-14
  11. 11. RF #wealthRF Decent trends in private pension wealth but big question marks over future Intergencommission.org 11 Median family private pension wealth per adult, by cohort: 2002-03–2012-14
  12. 12. RF #wealthRF Decent trends in private pension wealth but big question marks over future Intergencommission.org 12 Median family private pension wealth per adult, by cohort: 2002-03–2012-14
  13. 13. RF #wealthRF Generational gap emerges with property boom of 90s and 00s Intergencommission.org 13 Mean family net property wealth per adult, by cohort: 1993-2015
  14. 14. RF #wealthRF Overall, younger cohorts less wealthy at the same age… Intergencommission.org 14 Median family total net wealth per adult, by cohort: 2006-08–2012-14
  15. 15. RF #wealthRF But it’s not just a millennial/gen X issue Intergencommission.org 15 Change in median family total net wealth per adult as % of preceding cohort's wealth at the same age: 2006-08–2012-14
  16. 16. RF #wealthRF Growing inequalities within cohorts matter too Intergencommission.org 16 Percentiles of family total net wealth per adult, by cohort: 2006-08–2012-14
  17. 17. RF #wealthRF What’s driven rising wealth?
  18. 18. RF #wealthRF What’s driven rising wealth? • We quantify how much of these increases was driven by: – active behaviour e.g. putting income into savings or accruing pension rights vs. – passive gains i.e. ‘unexpected’ external forces or ‘luck’ Intergencommission.org 18
  19. 19. RF #wealthRF Property wealth growth driven mainly by house price boom Intergencommission.org 19 Active and passive changes to family net property wealth per adult, by cohort: 1993–2012-14
  20. 20. RF #wealthRF Pensions more complicated but ¾ of gains due to ‘valuation’ changes Intergencommission.org 20 ‘Valuation’ and ‘non-valuation’ changes to family private pension wealth per adult, by cohort: 2006-08–2012-14
  21. 21. RF #wealthRF Conclusions • Wealth is big, growing but often overlooked • Wealth inequalities are wide • Generational progress is going backwards – for younger baby boomers as well as millennials • Inequalities within cohorts important too, including on gender and geography • Much of property and pension wealth growth over the past 20 years has been down to luck rather than savings Intergencommission.org 21
  22. 22. RF #wealthRF The generation of wealth: Asset accumulation across & within cohorts
  23. 23. RF #wealthRF Session Two David Willetts, Executive Chair of the Resolution Foundation Nick Pearce, Director of the Institute for Policy Research, Bath University Rachel Sylvester, Columnist at The Times (chair) Intergencommission.org 23
  24. 24. RF #wealthRF The generation of wealth: Asset accumulation across & within cohorts
  25. 25. RF #wealthRF Wealth has grown, wealth taxation hasn’t Intergencommission.org 25 Aggregate wealth & wealth taxation as % of GDP: 1955-2015

×