The notion that baby boomers' wealth is a result of wise financial choices is being challenged, with critics arguing it is largely down to luck. As Chancellor Rachel Reeves considers taxing property and pension gains in the upcoming budget, the 'lucky generation' may find it hard to justify their accumulated riches.
Many baby boomers believe their wealth came from hard work and savvy investments, particularly in property and pensions. However, this narrative overlooks the role of state investment in boosting land values and the taxpayer subsidies that support pension savings, which amount to over £50bn a year.
Pension funds rely on the productivity of younger workers to generate returns, often at the expense of their pay and conditions. Similarly, property gains are driven more by public investment in amenities and infrastructure than by individual home improvements. This represents a transfer of wealth from younger generations to older homeowners.
Despite these arguments, organisations like Generation Rent and the Intergenerational Foundation have struggled to gain traction. The political landscape remains skewed towards protecting boomer wealth, as seen in France where pension reforms sparked riots.
Reeves may attempt to soften the blow by targeting the ultra-rich, but middle-income boomers are likely to bear the brunt of any tax changes. Their response could shape the political fallout from the November budget.
