The idea that all of the so-called ‘baby boomer’ generation have benefitted financially at the expense of younger people is a myth.
That’s according to a new report from the Ready for Ageing Alliance – a consortium of charities, including Age UK, Alzheimers Society, Carers UK and the International Longevity Centre – which emphasises that the catch-all term baby boomer has become overused and potentially dangerous shorthand, as it covers a diverse group of people who actually only have age in common.
Who are the baby boomers?
The term baby boomer isn’t particularly well defined, in the UK anyway. Over in the US, it is used to describe the generation born between the end of the Second World War and the early 1960s.
But in the UK, partly because of the fact that we had two post-war baby booms, it’s a much more loose term which can be used to cover anyone from 55-70.
Booming at the expense of the young
The report from the Ready for Ageing Alliance claims that there is a “growing media perception” that this generation have an easy life, at the expense of young people.
The picture painted is that they are all comfortable, but greedily grasping at every bit of cash that comes their way from the Government, with the younger generations left to foot the bill.
And according to the alliance, putting weight behind this myth has the potential to hurt both the young and old.
It has picked out a number of myths which it wants to set the record straight on.
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Generous pensions
A common claim is that the baby boomers will have a comfortable retirement because of their generous pensions.
The Ready for Ageing Alliance argues this is a myth though. Around 28% of people aged 55-64 have no private pension savings at all. That’s nearly two million people.
And even those who do have a private pension will find it won’t stretch too far, according to the report. With median pension pots of £135,900 (excluding those with no pension savings), that will equate to an annual income of around £7,500. That’s “woefully short of what is needed to secure an adequate income in retirement”, according to the report.
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Retiring early
The claim that baby boomers are so well off they can retire early isn’t true either, according to the report.
It points out that almost three-quarters of people between 50 and State Pension age are in employment, with only 7% inactive because they have retired.
Housing wealth
Baby boomers are supposedly the big benefactors of the housing boom, supposedly having snapped up properties for peanuts and are now sitting on a fortune.
[SPOTLIGHT]However, the report suggests this isn’t really true. Just under half of the homes owned by someone aged 55-64 are owned outright. What’s more, almost a quarter of this age group are renting, up from 18% a decade ago.
While the Ready for Ageing Alliance concedes that there are people who have benefitted greatly from house price rises, it argues that the price of lending was high in the 1970s and 1980s, with interest rates of 10% or more – not exactly cheap money.
Spending their children’s inheritance
The report suggests that baby boomers are accused of spending their children’s inheritance.
However, the coalition of charities says this is unfair. Some have limited wealth, while others intend to pass money onto their families after they die, pointing to the fifth of grandparents in England aged over 50 who have passed on money – totalling more than £647 million – to grandchildren in 2010.
Free university education
One of the sticks often used to beat the baby boomers is that they all got a free university education, while young people today end up thousands of pounds in debt for daring to pursue higher education.
However, as the report points out, the number of people going on to university back then was much smaller. Just under 20% of those aged 55-64 have a degree, dropping to just 12% for those aged 56-69.
Older people are far more likely to have few or no qualifications.
“Selfish and self-interest”
While baby boomers may be accused of being selfish and self-interest people, there are actually around 1.5 million people aged 65-74 who volunteer. It’s also worth noting that about 575,000 people aged 50-64 provide unpaid care.
Yet while this may all be true, if expert predictions turn out to be correct, the baby boomer generation will receive more in benefits – things like the Winter Fuel Allowance, free bus passes and free TV licences for the over 75s – than future generations, which is perhaps why there is so much resentment towards them.
What do you think? Are baby boomers unfairly maligned? Or do critics have a point? Let us know your thoughts in the comments box below.
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