Increasing longevity, while welcome, has far-reaching implications for the social contract between generations. These include eye-watering costs for health and social care…
Abstract
Purpose
Increasing longevity, while welcome, has far-reaching implications for the social contract between generations. These include eye-watering costs for health and social care, intense pressure on the old-age dependency ratio, changing power relations in politics and voting, and increasing pressure on in-work families. In a period of austerity, policy makers have chosen to protect older generations’ benefits and paid for this by slashing benefits for the young, in spite of growing evidence that wealth distribution has changed with older generations becoming wealthier than once thought. The paper concludes that age alone can no longer be used as a proxy for need. The paper aims to discuss these issues.
Design/methodology/approach
This discussion paper uses original quantitative research and analysis undertaken by the Intergenerational Foundation (IF) (www.if.org.uk) which includes Freedom of Information requests to government departments. It brings together the think tank's research into demographics, ageing, policy, government debt and liabilities, benefit reform and spending patters in order to investigate the changing distribution of wealth across the generations.
Findings
It is clear that with changing distributions of wealth that age alone can no longer be used as a proxy for need. While older generations are becoming wealthier younger generations are becoming increasingly burdened by debt, with poorer prospects and being asked to maintain the current status quo.
Originality/value
The paper contains original research conducted by the IF (www.if.org.uk) into spending patterns across the generations and annual public sector pensions.
Details
Keywords
The purpose of this paper is to expand upon the Intergenerational Foundation (IF) presentation given at the “Portraying of Ageing” conference, which was organised by the British…
Abstract
Purpose
The purpose of this paper is to expand upon the Intergenerational Foundation (IF) presentation given at the “Portraying of Ageing” conference, which was organised by the British Library and held in London in April 2014.
Design/methodology/approach
Changing demographics, wealth distribution, government debt and voting patterns are examined in order to question whether current government policy should continue to protect older generations at the expense of younger and future generations.
Findings
IF provides statistically robust evidence that, in spite of increasing wealth, older generations continue to be protected by government policy while younger generations are targeted for cuts from liabilities built up, but not paid for, by previous generations.
Social implications
Government policy may have tipped too far in favour of older wealthier cohorts, many of whom receive automatic benefits based on reaching a certain age. Governments should consider replacing age as a proxy for need with means-testing in order to rebalance benefits more fairly across the generations.
Originality/value
There have been limited research studies comparing the incidence of wealth amongst older generations and the scale of liabilities being passed on to younger and future generations. This paper will be of value to policy-makers interested in rebalancing the interests of all generations more equitably.