Parents can make their children richer by spending their inheritance now

While saving for a rainy day may seem the sensible option, older people should splash the cash to boost the economy and help the next generation, a think tank chief has suggested.

They should also worry less about having money to leave to their families when they die, it seems.

David Sinclair, director of the International Longevity Centre (ILC), said: ‘Much of the baby-boomer population – and particularly those in their seventies – have significant financial and housing wealth, and if they are not encouraged to spend, it will be bad news for younger people.’

The ILC, based in London, tracks the impact of longer life expectancy on society, and studies what changes can be made to better living standards for all.

Mr Sinclair also said ageism was preventing the over-50s from spending freely as they may not feel comfortable in public spaces which cater mainly for the young, including pubs and nightclubs blasting loud music.

While town and city centres want to boost the ‘night time economy’, less effort is going into making pubs quiet enough for people who are hard of hearing to have a conversation more easily.

Equally, the prevalence of typefaces which are hard for older people to read may deter them from spending. 

It was also claimed that older people ‘hoarding’ their savings was negatively affecting the economy and the prospects of younger people.

At this week’s Future of Ageing 2019 conference, the ILC will present a research paper which suggests that people aged over 50 will outspend younger age groups by 2040.

The think-tank predicts there will be strong growth in the areas of recreation and culture (a rise of £63billion at today’s prices), transport (£62billion), and household goods and services (£49billion).

The ILC said it was also a concern that older workers are leaving the workforce when they still have a valuable contribution to make. 

Mr Sinclair said society is ‘still not maximising the economic potential of older workers’.

David Sinclair, director of the International Longevity Centre (ILC), said: ‘Much of the baby-boomer population – and particularly those in their seventies – have significant financial and housing wealth, and if they are not encouraged to spend, it will be bad news for younger people’ (file photo)

He added: ‘Over one million older people leave the workforce before they are ready to do so, at huge economic cost for the country and social cost for individuals and families.’

He called the ageing society an ‘opportunity for growth’ and said: ‘Ageing is far too often portrayed as a drain on society. 

To maximise the longevity dividend we must fundamentally adapt the way we work, live and play. And we need to make sure these opportunities are open to everyone.

‘We cannot ignore the challenges associated with ageing and the wide inequalities that exist across our society and tend to widen as we age.’ 

Mr Sinclair also stressed that the responsibility to make changes for the better in society lies with ‘all of us’.

The ILC said it welcomed the recent Government announcement of the creation of a UK Longevity Council and a Business Champion for the Ageing Society.

Thursday’s conference will also showcase research that reveals how the earned income generated by people aged 50 and over may account for 40 per cent of total earnings by 2040.

It also suggests that the economic output generated by the earned income of the over-50s has grown by 20 per cent between 2004 and 2018.

And by 2040, the number of self-employed older people may almost match the number of young self-employed workers.