The social or intergenerational contract is the principle whereby different generations support one another depending on their resources and needs at different stages of their lives. Increasingly, evidence suggests that demographic change, low economic growth and high wealth inequality between generations are putting this under pressure. This research explores people’s perceptions and experiences of intergenerational inequalities, with a view to identifying solutions that will help strengthen the intergenerational contract and support the wellbeing of all generations. This research summary presents some early results from a YouGov survey carried out as part of this project.

Key findings

• Overall, half of the people surveyed felt that wealth in the UK is not fairly distributed.
• These perceptions align with evidence that younger generations have not benefitted as much from recent increases in wealth as older generations.
• Both younger and older generations feel government spending on their generation is too low.
• Across generations, most people believe that government support for older generations is likely to decrease in the future.
• There is a significant appetite for saving across all age groups. However, particularly among younger age retirement saving is not seen as a financial priority.

What happens next?

If trends continue, future generations of retirees will be worse off than current generations. Such wealth inequalities, whether perceived or real, risk threatening the stability of the intergenerational contract. This social contract between generations is a core engine of our societal cohesion, yet it often exists in the background, without comment or examination. This means that it can be changed, weakened or broken without us even realising it is happening. To ensure the intergenerational contract meets the challenges of the future, we’re speaking to policymakers and experts across the industry to seek answers around:

• How can we strengthen the intergenerational contract and promote more beneficial financial interaction between generations?
• There is a clear appetite for saving across all generations, but how can we encourage younger generations in particular to save for retirement?
• What products, services and support need to be put in place to enable current and future generations to better manage risk and secure a decent standard of living throughout their lives?

This research is supported by M&G plc. For the full snapshot report please click button below.