The first babies born in post-war Britain celebrate a milestone birthday this weekend as the ‘baby boomer’ generation reaches 80.
Nine months on from Victory in Europe (VE) Day on 8 May 1945, the country’s birth rate started to surge. This demographic phenomenon – known as the baby boom – resulted in almost one million (955,266) births in 1946.
On 8th February 2026, the baby boomer generation turns 80.
Approximately 470,000 baby boomers will mark their 80th birthday this year, according to analysis undertaken by the Equity Release Council (the Council) – the representative trade body for the equity release sector.
They join one of the UK’s oldest and fastest growing cohorts. There are now approximately 15,300 centenarians (people aged 100 years and over) in England & Wales. This has doubled from only 7,280 in 2003. In 1946, there were fewer than 300 centenarians in England & Wales.
1946 vs 2026
As living standards, medicine and technology have improved, life expectancy has grown. The positive health improvements following the introduction of the National Health Service, two years, after the birth of this cohort in 1948, has been significant.
Female life expectancy at birth in 1946 was 69 years, while men’s life expectancy was just 64 years.
The most recent official period life expectancy data from the Office for National Statistics (ONS) published December 2025 shows male life expectancy of 79 years at birth in the UK and 83 years for women.
Indeed, within 10 years, the UK’s over-80 population is expected to hit 4,934,490 (in 2036) – and reach 6,234,990 by 2046.
While only 1.7 per cent of the male baby boomers who turn 80 this year can expect to live to 100, 3.8 per cent of women can expect to live long enough to receive a letter from Buckingham Palace on their 100th birthdays in 2046[3].
Financial landscape fundamentally changed
The Council’s analysis shows how baby boomers have lived through fundamental changes to living standards over the last eight decades:
The average UK house price was £1,459 in 1946 (£53,503 in today’s money) compared to £271,000 today.
In 1946, the average annual wage in the UK was approximately £235 per year for full-time workers (based on an average wage of ~£4.50 a week) – around £8,615 in today’s terms. The latest figures suggest, median gross annual earnings for full-time employees are now £39,039.
The UK State Pension (officially the retirement pension under the National Insurance Act 1946) was introduced in July 1948 – so there was no contributory State Pension in 1946 itself. In 1948, a single person’s State Pension was £1.30 per week (decimal) while a married couple received £2.10 – around£66.86 in today’s money. For people reaching State Pension age on or after 6 April 2016, the full New State Pension is £230.25 per week – or £11,973 per year.
The research also highlights how tastes have changed. Margaret and John were the most popular boy’s and girl’s names in 1946 compared to Olivia and Muhammad (if spelling variants like Mohammed and Mohammad are included) today.
Pensioner poverty persists despite increased welfare spend
Over the 10 years between mid-2022 and mid-2032, there are projected to be around 17,000 more deaths than births.
Between mid-2022 and mid-2032, the number of people at state pension age is projected to increase by 1.7 million from an estimated 12.0 million to 13.7 million people, even taking into account the planned increases in State Pension age to 67 for both sexes, meaning an even greater share of public spending being allocated to older generations.
Around 55 per cent of social security expenditure goes to pensioners; in 2025 to 2026, the UK will spend £177.8 billion on benefits for pensioners. This includes spending on the State Pension which is forecast to be £146.1 billion in 2025 to 2026.
Despite increased real terms spending 1.9million pensioners still live in poverty.
Owner-occupiers aged 60-plus now hold a record estimated £2.89 trillion of net housing wealth in homes worth a total of £2.95 trillion In total. Owner occupiers over 60 control more than half (56 per cent) of all owner-occupier housing wealth across the UK, while those over 75 control almost a quarter (23 per cent).
Jim Boyd, CEO of the Equity Release Council, said: “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.”
Equity release allows older people to access the wealth in their homes, without needing to sell or move. Lifetime mortgages make up more than 99 per cent of the market. These mortgages let people borrow against their homes without making repayments unless they choose to. The loan and interest is paid when the customer dies or goes into long term care.
The Equity Release Council is the representative trade body for the equity release sector. Since 1991, more than 680,000 homeowners have accessed £50bn of property wealth via Council members to support their finances.
