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Press comment: Intergenerational Foundation audit shows parties failed to grasp issues for younger generations

10/12/2019

If you are covering the Intergenerational Foundation’s analysis on the party manifestos, please find below commentary from Jon Greer, head of retirement policy at Quilter:

Jon Greer“In previous decades, young people could look forward to enjoying a more prosperous future than their parents, as they had benefitted from greater fortune than the generation before. It became a truism that each generation would be better off than the last. But for a variety of reasons that steady growth in incomes has been replaced by stagnation, with those born in more recent decades often less well off than their parents were at the same age.

“However those concerned that the intergenerational social contract is under threat will not be reassured by the party manifestos which, as this analysis shows, continue to play to power of the grey vote at the neglect of the youth one.

“Given the rises in life expectancy, the cost of the state pension is only going to go one way. Therefore Labour’s plan to scrap rises to the state pension age will increase the burden on the deceasing number of working age people. Similarly, significant provisions would be needed to be set aside to fund promises made by both Labour and the Liberal Democrats to work with the Waspi women in order to compensate them for their issues, challenging the policy objective for responding to increased life expectancy.

“With all the main parties pledging to retain the triple lock could prove unsustainable in the long run and the bill will be picked up by the upcoming generations. Given the costs associated, perhaps it is unsurprising to see intergenerational experts worried about the impact on future generations.

“Away from pension policy, Labour has also pledged to scrap the inheritance tax residence nil rate band. While this is a complex allowance, scrapping it altogether will stem the flow of wealth between the generations and fail to address the increasing issue of intergenerational fairness.

“What is clear from the main parties is that they haven’t necessarily grasped the problem facing younger generations when it comes to pensions and tax. There will come a time when innovation is needed in this space and the sooner that begins the better the outcome.”

For more information contact

Gregor Davidson020 7002 716407917 522784gregor.davidson@quilter.com

Notes to Editors:

About Quilter plc:

Quilter plc is a leading wealth management business in the UK and internationally, helping to create prosperity for the generations of today and tomorrow.

Quilter plc oversees £109.8 billion in customer investments (as at 30 September 2019, excluding Heritage life assurance).

It has an adviser and customer offering spanning: financial advice; investment platforms; multi-asset investment solutions; and discretionary fund management.

The business is comprised of two segments: Advice and Wealth Management and Wealth Platforms.

Advice and Wealth Management encompasses the financial advice business, Quilter Financial Planning; the discretionary fund management business, Quilter Cheviot; and Quilter Investors, the Multi-asset investment solutions business.

Wealth Platforms includes Old Mutual Wealth UK platform and Old Mutual International, including AAM Advisory in Singapore.

The Old Mutual Wealth Heritage life assurance business was acquired by ReAssure Group Plc on 2 January 2020.

Since its IPO in June 2018, Quilter plc’s businesses have progressively rebranded to Quilter, as follows: 

  • Quilter Financial Planning (previously Intrinsic)
  • Quilter Private Client Advisers (previously Old Mutual Wealth Private Client Advisers)
  • Charles Derby Group (becoming Quilter Financial Advisers)
  • Quilter Financial Adviser School
  • Quilter Cheviot
  • Quilter Investors
  • Old Mutual Wealth (becoming Quilter Wealth Solutions in 2020)
  • Old Mutual International (becoming Quilter International in 2020)

This press release is for journalists only and should not be relied upon by financial advisers or customers.

Please remember that past performance is not a guide to future performance. The value of investments and the income from them can go down as well as up and investors may not get back any of the amount originally invested. Exchange rate changes may cause the value of overseas investments to rise or fall.

This communication is issued by Quilter plc.  Registered office: Millennium Bridge House, 2 Lambeth Hill, London EC4V 4AJ, United Kingdom. Registered number: 6404270.  Registered in England.