'Peter Pan' generation cannot afford life's 'milestones'

'Peter Pan' generation cannot afford life's 'milestones'

Britons in their early 30s are deferring parenthood and homeownership due to concerns they have not saved enough, research has suggested.

One in six Britons in their early 30s are postponing buying a home, or having children, because of fears about the financial impact on their lives.

That was the conclusion from a survey of 8,529 UK adults, carried out by YouGov and commissioned by insurer LV=, to measure the financial confidence of Britons aged between 30 and 35 years old - the so-called 'Peter Pan' generation.

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Nearly a quarter (24 per cent) of respondents in this age group said they were concerned about the financial impact of major changes in personal circumstances on their lives, with 17 per cent saying they had postponed having a child or buying a house because of their concerns.

“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,” Justin Harper, LV=’s head of policy and protection said.

“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.”

The LV= report stated that those aged between 30-35 are “one of the least financially resilient groups in the UK” with 43 per cent having no confidence about handing a personal financial crisis and 73 per cent falling short of the Money Advice Service guidelines on financial resilience.

Chris Shemilt, a senior partner at Cheshire-based financial advice group Lyon & Co, said there was a need for more to be done to encourage people to seek out independent financial advice as this could make a huge difference to levels of financial resilience.

He explained: “Most advisers will give at least the first half hour for free. We will help them map out their life plan, help them budget, and give them guidance on everything that they need. There are so many people out there that there that we can help. 

“Financial advice should be taught at schools. People do not get the education they need to learn how to run a bank account, to control a bank account, how to save up for something and avoiding credit. if they came to see an adviser, we could guide them for the beginning.”