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Pensions, Population, And Prices


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It seems a widely held belief that younger people in the UK today won't receive a state pension worth a bean when they reach state retirement age because of the decreasing birth rate and increasingly elderly population. From this, I infer that at some point in the future the elderly will form an unprecedentedly high proportion of the population.

If other processes don't intercede first, will not this fact alone be a natural antidote to stratospheric house prices: through inheritance, the accumulated wealth of the elderly will be concentrated in fewer and fewer people? If legacies bypass a generation, this reallocation would occur sooner. There is also some injustice in this, as your ability afford to house yourself depends on the wealth of your antecedents.

Increases in the population from migrants to the UK will not affect this process, since they would be unable to participate in the inheritance of UK house price based wealth.

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It seems a widely held belief that younger people in the UK today won't receive a state pension worth a bean when they reach state retirement age because of the decreasing birth rate and increasingly elderly population. From this, I infer that at some point in the future the elderly will form an unprecedentedly high proportion of the population.

If other processes don't intercede first, will not this fact alone be a natural antidote to stratospheric house prices: through inheritance, the accumulated wealth of the elderly will be concentrated in fewer and fewer people? If legacies bypass a generation, this reallocation would occur sooner. There is also some injustice in this, as your ability afford to house yourself depends on the wealth of your antecedents.

Increases in the population from migrants to the UK will not affect this process, since they would be unable to participate in the inheritance of UK house price based wealth.

Not sure I follow this. Each elderly person is likely to have several descendants. To take an example, an elderly spinster I know has 4 living nieces & nephews and eight grandchildren, Assuming she doesn't leave everthing to the Cats Home, her assets will be distributed not concentrated, whether left to the next generation or skipping it.

The main circumstance where it would be concentrated is if you have two elderly couples each with an only child who married each other - the Chinese situation, given their One child policy.

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It seems a widely held belief that younger people in the UK today won't receive a state pension worth a bean when they reach state retirement age because of the decreasing birth rate and increasingly elderly population. From this, I infer that at some point in the future the elderly will form an unprecedentedly high proportion of the population.

If other processes don't intercede first, will not this fact alone be a natural antidote to stratospheric house prices: through inheritance, the accumulated wealth of the elderly will be concentrated in fewer and fewer people? If legacies bypass a generation, this reallocation would occur sooner. There is also some injustice in this, as your ability afford to house yourself depends on the wealth of your antecedents.

Increases in the population from migrants to the UK will not affect this process, since they would be unable to participate in the inheritance of UK house price based wealth.

absolutely correct. a falling population with increasing inheritance bequests will result in a catastrophic concentration of wealth. the result of which would be to destroy that wealth.

the reality is that the boomer generation is far larger than the generation X so concentration would result.

OTOH, plunging interest rates will force most boomers to consume their wealth before they can pass it on.

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