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Elderly people are saving two thirds of their income

Grandma's thriftier than we thought

Turns out grandparents are thriftier than economists thought they were, saving the vast majority of their pension to be passed onto future generations.

What it means: A think-tank called the Institute of Fiscal Studies did a study into spending patterns in people between 70 and 90. There's been a change to the pension system recently which gives elderly people more control over our they spend their money.

Some were concerned this would lead to reckless splurging (picture economists worrying about grannies partying it up on old people's homes) but in fact, they're spending so little that analysts are now concerned it's not enough (loosen those purse strings Granny).

People aged 70-90 have an average of £185k in housing wealth (i.e. they own a property worth about that much) and 33k in savings, excluding pensions. That transfer of wealth to the next generation will be one of the biggest resource distributions we've seen – and how the next generation chooses to spend it will have hue effects on the one coming after.

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Reader Comments

  • RW

    Your right to a degree. You mentioned “the wandering Jew”.

    I elaborate that the Jewish people, historically have tended to migrate almost exclusively to locations that are economically and culturally vibrant already. I would speculate that Jews have thrived in these places and have often improved the bounds of their economies and knowledge base.

    You can also ask; how many massive entertainment conglomerates, Nobel winners or billionaires has Isreal developed? If Jews are so capable, why isn’t Tel Aviv the Rome of our time?

    Jews are successful because they value education, maintain a strong social cohesive, they actively monitor and have a good sense for Zeitgeist wherever they are and they carefully choose the places they settle and congregate themselves heavily in these choice locations.

    But most importantly (haulocaust increased the importance of this aspect), they actually designed their culture for success. They not only attend Harvard, they use what they learned to better the group as a whole. With as much, they studied intricate networking systems, adapted to it and in many cases improved upon them. (See how Japan acquired Aegis warships and made them better).

    Of course there is nothing wrong with any of this. It’s when you elaborately gain disproportionate power in any society where you would stand out, you must take care when attempting to make a society better (Civil Rights movement) and rewriting that society all together (mass immigration). Ask blacks in China, Mexico, Philippines or India how much opportunity they have? Go to businesses owned by their American diaspora and see how many blacks they hire. Go to Silicon Valley and see how many East or South Asian tech workers wish they could work with more black people. California might work as a state, but as a nation, I think your rolling the nuclear dice here. I hope we can succeed as a tolerant pluralistic superpower but at this stage in human societal development, it’s a pipe dream.

    And if Jews really are the icon for success, they would see that fundamental human successes happen over generations. Just look at the rest of the planet? Are we ready?