Europe's ageing burden strains younger generation

Europe's post‑war boom generation secured generous pensions and bought housing at low prices, but rising property values and pension costs now consume roughly a quarter of the EU’s GDP. Young Europeans face sky‑high house prices, longer periods living with parents and lower prospects of home ownership. The intergenerational transfer of fiscal responsibility means today’s workers fund retirees, limiting capital for businesses and slowing economic growth. Analysts note that unlike the United States, Japan or South Korea, most European seniors rely on state pensions rather than private savings, deepening the fiscal strain on younger cohorts.

The widening gap between housing costs and incomes, combined with an ageing population, is described as a “vertical” inequality that threatens Europe’s long‑term prosperity and social cohesion.