‘Peter Pan’ generation put off buying a home
People in their early thirties are putting off buying a home and having children, due to being one of the least financially resilient groups in the UK, according to LV=.
The insurance firm found that one in six have put off buying a home or having kids because they don’t feel financially confident enough for these major milestones.
LV= has worked with Dr David Lewis, an associate fellow of the British Psychological Society, to identify this group – aged 30-35 years – as the ‘Peter Pan Generation’, because many don’t prepare for the future.
For example, more than seven in 10 (73%) of this age group fall short of the Money Advice Service recommended amount of savings to be financially resilient, versus a national average of 56%.
A further one in five (22%) in their early thirties don’t know how long they would be able to cope financially if they found themselves unable to work – for instance, due to illness or an accident.
Despite this, fewer than one in 12 working adults (7%) have their own Income Protection insurance in place.
Justin Harper, head of policy for protection at LV=, said: “It’s deeply concerning that many of those in their early thirties are delaying major life milestones because they feel worried, unconfident and ill prepared financially. And it is worrying that so few of the Peter Pan Generation can withstand the financial effects of an unexpected income shock – they have no Plan A, nor a Plan B.
“With low financial confidence and little provision to handle a financial crisis, there is a need and opportunity for advisers to help this generation with their financial planning so they feel more secure. When it comes to the life milestone of buying a new home, advisers are ideally placed to include protection in every mortgage conversation with clients.”