The first Britons born in the surge of optimism that followed Victory in Europe Day turned 80 at the weekend, marking a demographic milestone highlighting how profoundly the country’s property and pension landscape has changed since 1946.
Nine months after VE Day on May 8 1945, births accelerated sharply. In 1946, 955,266 babies were born in Britain.
Yesterday (February 8, 2026) the earliest of that cohort reached their 80th birthday. And around 470,000 baby boomers will do so during 2026 according to analysis by the Equity Release Council.
They enter their ninth decade as members of one of the fastest-growing age groups in the country. There are now about 15,300 centenarians in England and Wales, more than double the 7,280 recorded in 2003. In 1946, there were fewer than 300.
RESHAPING THE MARKET
Rising longevity has reshaped both housing and retirement markets. Female life expectancy at birth in 1946 was 69, and 64 for men. The latest Office for National Statistics data show life expectancy at birth of 83 for women and 79 for men. Within a decade, the over-80 population is forecast to reach almost 4.9 million, rising to more than 6.2 million by 2046.
For a small minority of this year’s 80-year-olds, a telegram from Buckingham Palace may yet beckon: 3.8% of women and 1.7% of men turning 80 in 2026 are expected to reach 100.
PROPERTY PRICE INFLATION
Over their lifetimes boomers have witnessed an extraordinary inflation in property values. The average UK house price in 1946 was £1,459 – equivalent to £53,503 in today’s money – compared with about £271,000 now.
Earnings and pensions have risen too but at a different pace. In 1946, the average annual wage for a full-time worker was about £235, or roughly £8,615 in today’s terms.
Median gross annual earnings are now £39,039. The state pension did not exist in contributory form until 1948, when a single person received £1.30 a week – about £66.86 in today’s money. The full new state pension now stands at £230.25 a week, or £11,973 a year.
PENSIONER POVERTY
Yet despite higher nominal incomes and welfare spending, pensioner poverty remains entrenched. Government projections show that between mid-2022 and mid-2032 the number of people above state pension age will rise by 1.7 million to 13.7 million, even as the state pension age increases to 67.
Around 55% of social security spending already goes to pensioners, with £177.8 billion forecast for 2025-26, including £146.1 billion on the state pension. Even so, 1.9 million pensioners are estimated to live in poverty.
At the same time, housing wealth has become increasingly concentrated among older homeowners.
Owner-occupiers aged over 60 now hold an estimated £2.89 trillion in net housing wealth, in homes worth £2.95 trillion in total – more than half of all owner-occupied housing wealth in the UK. Those aged over 75 control almost a quarter.
BOLSTERING FINANCIAL SECURITY
Jim Boyd (main picture, inset), Chief Executive of the Equity Release Council, says: “The extended lifespans we now enjoy should be celebrated as a testament to the remarkable economic and social advancements that the baby boomer generation has witnessed.
“Yet ever longer lives means that for many, achieving the standard of living they hope for remains a challenge. Those aged 80 or over join our fastest growing cohorts, and those most in need of care, yet few have saved sufficient funds to meet their care costs and poverty among pensioners continues to affect a significant number of older households.
“The current retirement environment highlights the importance of considering how to make the most effective use of all one’s assets to bolster financial security. Many people aspire to grow old in the familiarity and comfort of their own home, so the ability to release equity from property to supplement inadequate pension income can improve their prospects of a more comfortable retirement.”
