The Great Wealth Transfer… Who Really Benefits?

The Great Wealth Transfer… Who Really Benefits?

by Guy Olsen, The Equity Release Partnership

There’s a widely held belief that the UK is on the cusp of the largest intergenerational wealth transfer in history. Trillions of pounds are expected to pass from one generation to the next, and on the surface, it sounds like a rising tide that will lift all boats. But when you look more closely at how that wealth is held, when it’s likely to transfer, and how people actually behave with it, the picture becomes far more nuanced.

According to Savills, those aged over 60 now hold around 55% of the UK’s total housing equity, equating to roughly £3.84 trillion. Much of this wealth sits in mortgage-free homes, accumulated over decades of house price growth and gradually repaid borrowing. Meanwhile, younger generations are navigating a very different landscape, often relying on large deposits, family support and increasingly expensive debt just to get onto the property ladder. The imbalance is clear, but the assumption that it will naturally correct itself through inheritance is far less certain.

This is where the work of Dr Eliza Filby becomes particularly relevant. In her book Inheritocracy, she explores how inheritance is becoming a defining force in shaping life outcomes, but not necessarily in the way people expect. One of her central arguments is that timing has fundamentally shifted. Where previous generations might have inherited wealth in their 30s or 40s, many people today are far more likely to receive it in their 50s, 60s or even later. By that stage, the moments where financial support would have had the greatest impact, buying a first home, raising children, building a career, have often already passed.

That shift in timing changes the role inheritance plays. It becomes less about enabling opportunity and more about enhancing comfort. It may improve retirement, provide additional security, or allow for discretionary spending, but it is less likely to alter the overall direction of someone’s financial life. In that sense, the idea of a “great wealth transfer” risks being slightly misleading. Wealth is moving, but not always in a way that meaningfully reshapes the challenges faced by younger generations.

There is also a broader societal shift at play. People are living longer, and importantly, living better for longer. Retirement is no longer a short, final chapter, it can span 25 or 30 years. As a result, many individuals are choosing to use their wealth rather than simply preserve it for the next generation. Travel, home improvements, supporting family while alive, or simply maintaining their own standard of living in the face of rising costs are all valid and increasingly common choices. That £3.84 trillion of housing wealth is not sitting idle, it is being actively used to support longer, more fulfilling lives.

Even where there is an intention to “unlock” property wealth, the reality is often more complicated. Downsizing, frequently cited as the obvious solution, faces both practical and emotional barriers. Suitable properties, particularly bungalows, are in short supply, and for many, the idea of leaving a long-term home is about far more than financial logic. There is also a psychological dimension, with some homeowners reluctant to sell in a market that does not reflect peak valuations, even if significant gains have been made over time. As a result, wealth often remains tied up in property for longer than expected.

Meanwhile, younger generations are adapting in real time. The “Bank of Mum and Dad” has become a familiar concept, with billions of pounds being gifted or lent to help with deposits. This represents a form of early wealth transfer, but it is typically partial and uneven, dependent on individual family circumstances rather than a broad, systemic shift. It also reinforces one of the key themes in Inheritocracy, that access to family wealth is increasingly shaping financial outcomes, creating a divide not just between generations, but within them.

So who really benefits from the great wealth transfer? The honest answer is that everyone may benefit to some degree, but not always in the way headlines suggest. Older generations benefit from the flexibility and security their wealth provides, with the freedom to decide how and when it is used. Younger generations may benefit too, but often later than anticipated, and sometimes only after the most financially demanding stages of life have passed.

This raises an important question. Is waiting for inheritance a viable strategy, or simply an assumption that may not align with reality? Increasingly, the conversation is shifting away from what happens at the point of death and towards how wealth can be used more effectively during life. That might involve supporting family earlier, structuring gifts more deliberately, or exploring ways to access property wealth without disrupting other financial plans.

The idea of a great wealth transfer is not wrong, but it is incomplete. It is not a single event that will reshape financial outcomes overnight. It is a gradual process, influenced by longevity, behaviour, family dynamics and personal choice. And in many cases, the people who benefit most are not those who wait for it, but those who plan around it.

About the Author

Guy Olson – Managing Partner, The Equity Release Partnership

Guy is a later life financial specialist with a background in equity release and wealth planning. He works closely with solicitors, accountants, care providers and financial advisers to help clients make smart, practical decisions about their finances, whether that’s funding care, supporting family or navigating the financial challenges of later life. Guy is a member of the Society of Later Life Advisers (SOLLA) and the Equity Release Council, and brings a clear, down-to-earth approach to topics that can otherwise feel daunting.

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