Pandering to baby boomers’ mania for saving is economic madness | Phillip Inman

With the Bank of England controlling inflation, and the Treasury enslaved to pensioner votes, policies that would share wealth with younger generations don't stand a chance

The greatest threat to our economy comes from its ageing population. With the baby-boomer generation making up a large proportion of society, we find ourselves in a situation where public policy is mostly geared towards shoring up the gains made by boomers over the past 40 years, and industrial disputes are driven by an ageing union membership most worried about its pension entitlements.

It is a problem that Britain shares with its continental cousins, the US and Japan, now that all are struggling with a situation where a fifth of their populations is aged over 65 and the proportion is rising fast. Ageing populations have many effects on an economy, not least the desire among those nearing retirement age to save excessively.

The glut of stocks, bonds and property savings will maintain the trend of too much money chasing too few opportunities