Over 50s deserve the wealth they worked so hard for

The over 50s have come in for a battering recently. They have been criticised for owning large houses and pushing up house prices; and they have been attacked for benefiting from a culture of generous pensions. Parliament even launched an investigation into whether older people are getting too many benefits. But do they really deserve such criticism?

Earned it

A report by the Centre for Economic and Business research and Saga is arguing that while the over 50s may hold the majority of the UK's household wealth, they have gained this through contributing to the economy - and are now using it to benefit everyone. Instead of being criticised, they should be supported.

The report found that the over 50s have wealth equivalent to £6.2 trillion - almost 70% of all the wealth held in the UK. This is partly a result of the fact that pension and property wealth is up £660 billion since 2011, but it's also because this generation had a culture of hard work and sacrifice - so they could save for the future. As a result, during their working lives, they have contributed trillions of pounds to the UK economy.

Nici Audhlam-Gardiner, managing director of Saga Investment Services, says: "The prosperity of the UK's over 50s is not a sleight of hand but rather testament to their own efforts. Many people have worked hard, saved diligently and built up savings, investments and pensions over many years of working. As they approach and then move into retirement this money needs to work hard for them in order to allow them to achieve their goals and maintain their quality of life."
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Shared

Saga adds that now older people have saved up trillions of pounds, they are not simply taking this cash out of the economy and sitting on it, they are sharing the wealth. Audhlam-Gardine highlights: "Many over 50s are not just saving for themselves. A number of this age group will want to do as much as they can for younger family members, whether children or grandchildren – using their savings to help them get on the housing ladder or pay for expenses such as school fees."

Saga is arguing that instead of criticising the over 50s for holding the bulk of the country's wealth, the government should be focusing on ensuring older people make the most of their money. The over 50s hold £3 in every £4 of financial wealth held in things like stocks and bonds. However, only a fifth of their money is held in things like this - with the rest in cash, property and physical wealth.

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By supporting this group, and enabling them to make more informed investment decisions, Audhlam-Gardiner argues, they could be persuaded to hold more of their wealth in the kinds of assets that work harder for both themselves and the wider economy.

"The wider impact of increased investment earnings is considerable, from increased household consumption through to higher government tax revenues and less reliance on state-funded care in later life. As such, it is in everyone's interest to encourage and support the nation to be better informed and more comfortable about managing their money."

But what do you think? Do you agree that older people deserve to enjoy the money they have earned and helped to make the most of it? Or would you like to see the government shift the balance of wealth away from pensioners to young people? Let us know in the comments.