Pension wealth statistics 'overstated inequality between old and young'

21 Apr 2026

Flawed pension wealth statistics have overstated the inequality between the old and young, research published by the Institute for Fiscal Studies (IFS) has shown.

According to the IFS, 54% of total household wealth was held in pensions in 2020 to 2022, compared with only 38% according to official statistics. It also found that the share of household wealth held by people aged between 20 and 39 increased significantly over the 2010s from 10% between 2020 to 2012 to 18% between 2020 and 2022.

Additionally, the share of total household wealth held by the top 10% fell gradually from 45% in 2006 to 2008 to 42% in 2018 to 2020.

Laurence O'Brien, Senior Research Economist at the IFS, said: 'Good policy starts with good data. Methodological changes and inconsistencies have made it difficult to get a clear picture of wealth inequality in Britain, and how this has changed over time. Addressing these issues reveals that the share of wealth held by the top 10% has fallen by more since 2006 to 2008 than suggested by official estimates.'