Powys revealed as top Baby Boomer hotspot in Wales

• In 2019, the final members of the Baby Boomer generation turn 55 – the age they can access their pension
• Nearly three in ten (28.6%) people in Powys are Baby Boomers, the highest proportion in Wales.
• The number of Baby Boomers in Wales is 23.4% of the total population.
• This is higher than the UK average of 21.4%.

 As the final members of the Baby Boomer generation reach the age they can access their pension, analysis by Aegon, the pensions and investment company, reveals Powys as the location with the highest proportion of Baby Boomers in Wales.

2019 is a turning point for nearly one million people in the UK as they celebrate their 55th birthday and reach the age they can access their pension*. The introduction of the pension freedoms in 2015 means that individuals with defined contribution pensions can now access their pension savings with complete flexibly from the age of 55 and start to take a retirement income if they choose.

To mark this occasion, Aegon has carried out analysis of the latest population projections to reveal the areas around the UK with the highest proportion of Baby Boomers**.

The Baby Boomer generation is the post-war generation born between 1946 and 1964 and will be aged between 55 and 73 this year. They are in part characterised by the wealth they have accumulated through factors such as generous defined benefit pensions, the long-term rise in the stock market and the boom in the housing market.

In the UK, West Somerset tops the list of local authorities with the highest proportion of Baby Boomers. Over one in three (33.4%) of its population are in this bracket.

In Wales, which has the highest proportion of Baby Boomers out of the all the countries within the UK, Powys tops the list where nearly three in ten (28.6%) of the population are Baby Boomers.

At the opposite end of the scale, Cardiff is the local authority with the lowest proportion of Baby Boomers in Wales. Just 17.5% of its population are part of this generation.

Top 10 Baby Boomer Hotspots in Wales (^full list below)

Steven Cameron, Pension Director at Aegon, says:

“More than one in five of the UK’s population are classed as Baby Boomers and this year the youngest of this generation turn 55. This marks a significant milestone as it means all Baby Boomers will be able to access their pension and those with defined contribution pensions will increasingly be using newfound flexibility to transition gradually into retirement. With Baby Boomers controlling much of the nation’s wealth, this trend towards retirement will have significant implications for society and the economy as people start spending savings built up over decades.

“The freedoms enable a more flexible transition into retirement, but they have also introduced greater risk with an increasing number of people responsible for investing appropriately and ensuring they do not overspend and run out of money part way through retirement. For some Baby Boomers, as well as planning retirement needs, they have a further opportunity to work out how best to pass wealth down through the generations, although this can be challenging.

“The financial decisions Baby Boomers face are often complex and can have significant consequences on their future lives and those of their families. As more people move towards retirement, there are major benefits in seeking the help of financial advisers on how to make the most of these new opportunities.”

References

* Population projections for the UK are taken from the Office for National Statistics and are based on the latest 2016-based population projections for 2019 split by local authorities. Local area population projections are published by the Welsh Government every three years so the latest projections are 2014-based. Population projections for Wales can be found on the Stats Wales website: https://statswales.gov.wales/Catalogue/Population-and-Migration/Population/Projections/Local-Authority

** Through gathering official population projections by gender, local authority (LA) and single year of age for England, Scotland, N. Ireland and Wales, we identified the number of the people in each LA who will be aged 55-73 in 2019. Dividing this number by the projected total population in each LA allowed us to find the proportion of Baby Boomers throughout the UK.

^Wales – All Local Authorities