Dear baby boomer, the government is eyeing your wealth. The assets and pensions you’ve built over the past 40 to 50 years are now under scrutiny. While the state pension’s triple lock may be safe for now, wealthier boomers could see their private assets targeted to help fund government departments that have faced budget shortages for nearly two decades.
These are tough times, and taxing the wealthy is a drastic step. No government wants to do it, fearing the rich might simply leave—as seen in Norway, one of the few European countries that still has a wealth tax. Middle-income older voters are less likely to move, but they tend to vote in their own interests. And since baby boomers are the most active voting group—and many are among the wealthiest—this has often spelled trouble for the party in power.
There have been hints of this before, but now it seems serious.
Property wealth is at the center of recent Treasury discussions, and for good reason: the housing market is stuck and needs to become more flexible. The Treasury is looking at shifting the burden of council tax and the long-standing stamp duty land tax (SDLT) toward more expensive homes.
One proposal isn’t so much about raising more money from SDLT as it is about encouraging more transactions. By taxing pricier home sales more heavily and offering discounts on cheaper ones, the hope is that people will be more willing to move for work, boosting labor mobility and economic growth. More growth means more tax revenue—a win-win.
In the short term, this might lead to more sales. But as we saw with the Help to Buy scheme under David Cameron and George Osborne, tax incentives often just push prices up, with sellers benefiting most. Ministers should ask why so many people, especially retirees in their late 70s, 80s, and 90s, choose to stay in their homes rather than sell.
Any property tax debate should focus on the UK’s 12 million people over 65, who occupy a large share of family homes. According to a study by the Intergenerational Foundation, the average 65-year-old has over 65 square meters of space per person, while those aged 30 to 44 have less than 40. There’s a shortage of homes with three or more bedrooms, and many are owned by older people who use only a fraction of the space, except during family gatherings.
Resistance to selling is strong. Older homeowners have emotional ties to their properties and are often put off by the stress and paperwork involved in moving. But studies show the biggest barrier is a lack of suitable smaller homes—ones that are still attractive to those downsizing from larger houses.
Flats in modern towers designed for young professionals tend to be small and cramped, not ideal for someone looking for a forever home that might need to accommodate a wheelchair. Local councils often overlook older people’s needs in public housing plans, and the Ministry of Housing doesn’t seem to prioritize this issue. Housing for older people is mostly limited to sheltered accommodations, largely provided by the private sector.Providers like Axa and McCarthy Stone offer options, but the reality is this: Boomers, your reluctance to act has consequences. There’s little demand for the smaller, more suitable homes that could meet your needs in later life. It seems many of you just want to retire early, cash in, and walk away with what feel like accidental gains—accidental because they came mostly from being born at the right time, when your generation’s sheer size drove up property and share prices.
Boomers are often seen as the problem, but they could also be part of the solution—and face less criticism—if they contributed more time to their communities instead of taking multiple holidays abroad, and if they moved out of their large family homes sooner, making space for younger families. That might reduce the pressure to tax their wealth.
The government is struggling financially because the economy has been sluggish since the financial crash. But it doesn’t have to stay that way. If wealthier retirees started demanding appropriately sized housing, the private sector would respond, home sales would rise, and the economy could gain momentum. Without that shift, the UK—like other ageing, affluent nations—could remain stuck.
If boomers can’t or won’t act together for the common good, which seems unlikely for many reasons, then it may be fair for the government to recoup some of those windfall gains through higher taxes on property and pensions. Still, boomers, it’s been quite a run.
Phillip Inman is a senior economics writer for the Guardian.
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Frequently Asked Questions
Frequently Asked Questions
1 What is the baby boomer generation
The baby boomer generation refers to people born between 1946 and 1964 following World War II when birth rates increased significantly
2 Why is the UK mentioned in relation to baby boomers and turmoil
The UK is used as an example because it is currently facing economic and political challenges and its large baby boomer population may play a key role in addressing these issues
3 How can baby boomers help a country in turmoil
Baby boomers with their experience skills and often financial stability can contribute through leadership volunteering mentoring or supporting economic stability
4 Are baby boomers generally willing to step up during crises
It varies but many baby boomers are active and engaged though factors like health retirement plans or personal priorities can influence their willingness
5 What challenges might prevent baby boomers from helping
Common challenges include health issues fixed incomes caregiving responsibilities for older relatives or grandchildren and potential resistance to change
6 How does the UKs situation relate to other countries
Many developed nations have aging baby boomer populations facing similar turmoil so the UKs experience could offer insights for countries like the US Canada or Australia
7 What are some examples of baby boomers making a difference in tough times
Examples include volunteering in community organizations providing expertise in business or governance and advocating for social or political reforms
8 Could baby boomers actually worsen a crisis
In some cases yesif they prioritize their own interests over broader societal needs it could deepen divisions or economic strain
9 What practical steps can encourage baby boomers to contribute
Initiatives like flexible volunteering opportunities intergenerational programs and policies that support active aging can help engage them effectively
10 How does this topic tie into broader economic or social issues
It highlights the role of generational dynamics in crisis response including workforce trends pension systems and the balance of responsibilities between age groups
11 Is there data or research supporting the idea that baby boomers can rise to challenges
Yes studies show that older adults often contribute significantly during crises through unpaid work expertise and stability but outcomes depend on
