The most notorious case of middle-income baby boomers seeking revenge for financial losses happened in Germany in 2009, when a retired builder and his pensioner accomplice took their financial adviser hostage after more than £2 million in stock market investments collapsed.
In the UK, Chancellor Rachel Reeves is unlikely to face the same threat if she targets some of the wealth baby boomers have built up through property and pensions in her November budget. Still, those affected will look for ways to retaliate.
Instead of acknowledging that their good fortune has come at a high cost to younger generations and the broader economy, wealthy baby boomers are actually less likely to vote for Labour than any other party in the next election.
If Reeves adopts proposals aimed at reclaiming some of the enormous gains made by this privileged generation, the Treasury will hear a clear message: “Don’t touch our hard-earned wealth.”
Baby boomers argue that they worked hard and saved diligently to enjoy a comfortable retirement. They also claim that rising property values are partly due to their smart investments and efforts to improve their homes, making them more attractive and valuable.
To the rest of society, these arguments seem hollow. Even if they worked hard, it was never so productively that it could fund a 30-year retirement.
One common misconception among retirees is the idea that a pension is a pot of money saved over time and drawn from in later life. The term “pension pot” reinforces this image of cash stored in a vault, ready to be paid out monthly. In reality, pensions depend on investments growing and generating income, which relies on today’s private-sector workers staying competitive globally, winning new business, and innovating.
Employers, often pressured by owners—such as pension funds or private equity firms using pension money—prioritize paying dividends over investing in research and development. They also limit pay raises and cut benefits to boost profits and share prices, disproportionately affecting younger workers.
If pension funds invest in government bonds, retirees effectively charge governments high interest on borrowing—money often needed to fund healthcare and pension payments that benefit retirees themselves.
Pension savers also receive over £50 billion a year in taxpayer subsidies. Many baby boomers benefited the most, enjoying a 40% boost to their monthly savings if they were higher-rate taxpayers at some point.
In this sense, personal retirement savings—and the relentless drive of fund managers to maximize returns—can be seen as a burden on the nation and a tax on younger generations.
In property, another myth prevails: baby boomers believe their gains are solely due to their own choices, like home improvements or buying in desirable locations. In truth, what makes an area desirable depends heavily on state investment in local amenities, transport, schools, and crime reduction—not just individual effort.
It’s clear that both property and pension investing involve a significant transfer of wealth from younger people to older generations.Organisations such as Generation Rent and the Intergenerational Foundation, a research charity, have often argued that older homeowners should contribute more to support renters, but few are willing to back this cause.
In France, for example, people protest to defend pension benefits that are increasingly unaffordable—campaigning in the opposite direction. To make such a policy more acceptable, Chancellor Reeves could introduce taxes on the ultra-wealthy to reinforce a sense of fairness. However, the very rich are often difficult to tax effectively, meaning that only middle-income baby boomers and their accumulated wealth could generate enough revenue to meaningfully reduce the state funding gap.
Boomers are likely to argue that the chancellor is breaking long-standing promises made to savers and homeowners. This sentiment echoes the experience of a German builder, his elderly friend, and their wives—all deemed complicit by the court in the kidnapping of their financial adviser. Before the financial crisis devastated them financially, they too believed a comfortable retirement was their entitlement, even as those around them lost jobs or saw their standards of living decline. British boomers would do well to avoid falling into the same mindset.
Frequently Asked Questions
Of course Here is a list of FAQs about the idea that Boomer wealth is primarily due to smart decisions written in a natural tone with clear direct answers
General Beginner Questions
1 What is the main argument here
That while Boomers made smart choices their wealth was built on a foundation of unique economic advantages that no longer exist for most people today like cheaper education strong unions and rapidly rising home values
2 Werent Boomers just better with money
They were often disciplined savers but their success was massively amplified by factors outside their control Saving the same amount of money in todays economy doesnt yield the same results
3 What specific advantages did Boomers have
Key advantages included drastically lower college costs a strong job market with pensions and housing that was much more affordable relative to income
4 Isnt blaming economic conditions just making excuses
Its not about blame its about recognizing that individual success is heavily influenced by the broader economic environment This helps explain the wealth gap between generations today
Advanced Detailed Questions
5 How did government policies help Boomers build wealth
Policies like the GI Bill heavy investment in public universities keeping tuition low and tax deductions for home mortgages specifically benefited those buying homes in the midtolate 20th century
6 What role did luck and timing play
A huge role Simply being born in a postwar economic boom meant entering the workforce during a highdemand highwage era and buying assets like houses before their prices skyrocketed due to later population growth and inflation
7 Dont Millennials and Gen Z have new opportunities like tech
While new industries exist they often come with high barriers to entry and dont employ nearly as many people as the manufacturing and industrial sectors that buoyed the Boomer middle class
8 How does the smart decisions narrative harm younger generations
It can lead to dismissing the very real financial struggles of younger people as personal failure rather than a result of systemic economic shifts like stagnant wages and soaring costs for education and housing
Common Problems Examples
9 Whats a concrete example of this wealth gap
In 1980 the median home price was about
