The UK is entering a new era of wealth ownership…
What is the Great Wealth Transfer?
The Great Wealth Transfer refers to the massive shift of financial assets from older generations (mainly baby boomers, but also from the silent generation) to younger generations (such as millennials and gen z) over the coming decades.
While this term originated in the US, the same trend is occurring in the UK, and it is estimated that £5.5 trillion in assets will be passed down the generations by 2050, significantly altering financial markets.
Changes Along Gender Lines
According to the Centre for Economics and Business Research (CEBR) by the end of 2025 it is estimated that women will hold 60% of Britain’s wealth. The main reason cited by them is that a large portion of Britain’s wealth is currently held by those in the baby boomer generation, most often by couples, in which men often manage the finances. CENR states that this is set to change, as older women tend to outlive their male counterparts, and assume independent control of the family wealth.
This shift in who holds wealth is taking place at the same time as the great wealth transfer, where millennials and gen z are starting to inherit substantial assets.
What to Be Aware of When Passing on Wealth
Whether you are planning to pass on wealth to your loved ones when you die, or are receiving it from another, there are some key things to be aware of.
- Wills – making a will is important to ensure our assets go where we want them to in the event of our death. You can read this blog to find out more about what happens when you, or someone you love, dies without a will
- Taxes- whether you’re leaving or inheriting wealth, it’s important to understand what taxes may be due, as this can impact the amount that is passed down. Inheritance tax is a tax which may be applied to a person’s estate when they die, which you can find out more about with this blog. However, other taxes may need to be paid after a death, such as capital gains tax or income tax, which Money Helper has useful information on
- Financial advice – consider getting professional advice from a regulated and qualified financial adviser. A financial adviser can look at your own personal and financial circumstances to give you tailored advice