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 5,116 households in Ramsgate owned by Ramsgate
Baby Boomers (born 1946 to 1964) and Ramsgate’s Silent Generation (born 1945
and before). It also shows there are 7,606 Generation X’s of Ramsgate (Ramsgate
people born between 1965 to 1976). Looking at demographics, homeownership
statistics and current life expectancy, around two-thirds of those Ramsgate 7,606
Generation X’s have parents and grandparents who own those 5,116 Ramsgate
… and they will profit from one of the biggest inheritance explosions of any post-war
generation to the tune of £1.208bn of Ramsgate property or £238,094 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 6,093 Millennials in Ramsgate and my research shows around two thirds
of them are set to inherit the 5,207 Ramsgate Generation X’s properties. Those
Generation X’s Ramsgate homes are worth £1.229bn meaning, on average, each
Millennial will inherit £302,503; but not until at least 2040 to 2060!
While the Ramsgate 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 Ramsgate
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 Ramsgate 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 Ramsgate 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 a Ramsgate 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 Ramsgate grandparents doing something meaningful, and
helping their grandchildren, the Millennials, with the deposit for their first house.
One solution to the housing crisis in Ramsgate (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?