That got your attention ... didn’t it!
But before we start, what is Generation X, let alone Generation
Z, Millennials, Baby Boomers ... these
are phrases banded around about the different life stages (or subcomponents) of our society. But when terminologies like this are used as
often and habitually as these phrases (i.e. Gen X this, Millennial that etc.),
it appears particularly vital we have some practical idea of what these terms
actually mean. The fact is that everyone uses these phrases, but often, like
myself, they are not exactly sure where the lines are drawn ...until now…
So, for clarity …
Generation Z: Born
after 1996
Millennials: Born
1977 to 1995
Generation X: Born
1965 to 1976
Baby Boomers: Born
1946 to 1964
Silent Generation: Born
1945 and before
My research shows there are 6,614 households in Aylesbury
owned by Aylesbury Baby Boomers (born 1946 to 1964) and Aylesbury’s Silent
Generation (born 1945 and before).
It also shows there are 17,468 Generation X’s of Aylesbury (Aylesbury
people born between 1965 to 1976).
Looking at demographics, homeownership statistics and current life expectancy,
around two-thirds of those Aylesbury 17,468 Generation X’s have parents and
grandparents who own those 6,614 Aylesbury properties.
… and they will
profit from one of the biggest inheritance explosions of any post-war
generation to the tune of £2.599bn of Aylesbury property or £223,029 each but they
will have to wait until their early 60’s to get it!
However, it’s the Millennials that are in line for an even
bigger inheritance windfall.
There are 11,761 Millennials in Aylesbury and my research
shows around two thirds of them are set to inherit the 9,060 Aylesbury Generation
X’s properties. Those Generation X’s Aylesbury homes are worth £3.560bn meaning,
on average, each Millennial will inherit £453,757; but not until at least 2040 to 2060!
While the Aylesbury Millennials have done far less well in amassing
their own savings and assets, they are more likely to take advantage of an
inheritance boom in the years to come. This will probably be very welcome news
for those Aylesbury Millennials, including some from poorer upbringings who in
the past would have been unlikely to receive gifts and legacies.
However, inheritance is not the magic weapon that will get
the Millennials on to the Aylesbury housing ladder or tackle growing wealth cracks
in UK society, as the inheritance is unlikely to be made available when they
are trying to buy their first home…but before all you Aylesbury Millennials start
running up debts, over 50% of females and around 35% of men are going to have
to pay for nursing home care. Interestingly, I read recently that a quarter of
people who have to pay for their care, run out of money.
So, if you are an Aylesbury Millennial there potentially will
be nothing left for you.
Of course, most parents want to give their children an
inheritance, the consideration that what you have worked genuinely hard for over
your working life won’t go to your children to help them through their lives is
a really awful one … maybe that is why I am seeing a lot of Aylesbury
grandparents doing something meaningful, and helping their grandchildren, the Millennials,
with the deposit for their first house.
One solution to the housing crisis in Aylesbury (and the UK
as a whole) is if grandparents, where they are able to, help financially with
the deposit for a house. Buying is cheaper than renting – we have proved it
many times in these articles … so, it’s not a case of not affording the
mortgage, the issue is raising the 5% to 10% mortgage deposit for these Millennials.
Maybe families should be distributing a part of the family
wealth now (in the form of helping with house deposits) as opposed to waiting
to the end… it will make so much more of a difference to everyone in the long
run.
Just a thought?
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