Sarah Pennells, Consumer Finance Specialist at Royal London, comments on research from the Institute for Fiscal Studies (IFS), which found having wealthy parents leads to young adults being six times better off:
“These figures are very revealing, but they miss a trick by excluding pension wealth. This research shows that people with wealthier parents also tend to earn more and therefore save more as a portion of their earnings, so the overall value of the ‘wealthy parent bonus’ could be even higher.”
About Royal London
Royal London is the largest mutual life insurance, pensions and investment company in the UK, with assets under management of £153 billion, 8.8 million policies in force and 4,075 employees. Figures quoted are as at 30 June 2021.