Those born in the 1960s and 1970s will only be better off than the previous generation when they retire due to inherited wealth, a leading economic think-tank has found.

The Institute for Fiscal Studies has found people born in the two decades from 1960 will, on average, have no higher income or savings, will be less likely to own a home and will have smaller private pensions than their predecessors from ten years earlier.

The only respect in which they will be better off is that they are more likely to inherit, with around 70 per cent of those born in the late 1970s expecting to receive an inheritance compared with 28 per cent of those born in the early 1940s.