80% of UK adults believe younger generations are worse off now than two decades ago, according to research from Hymans Robertson Personal Wealth. More than half (59%) blame the rising cost of living as a key pressure, while almost half (43%) highlight increasing housing costs. Surprisingly, almost three quarters (74%) of over 55s say today’s young adults have a much harder time getting ahead financially.
There is a clear shared recognition across generations that the financial landscape has become harsher. The leading financial advice firm says that this underlines the growing importance of employers offering practical guidance and access to savings support in the workplace. It also believes younger employees need to have a better understanding of their finances and saving tools available to them. This would enable them to build confidence and take steps toward long-term financial stability.
Commenting on the struggles of saving, Ollie Le Farge, Corporate Client Manager, Hymans Robertson Personal Wealth says: “It's clear from our research that it isn’t just young people who feel their generation is under undue financial pressure. All generations recognise the financial strains that are leaving many young people vulnerable and reducing their motivation to build an emergency fund and save for the future. This is striking, as it is often assumed that each generation believes they had just as hard a time financially when they were young and ‘starting out’. Instead, there is a shared recognition across the population that today’s financial pressures on young people are particularly severe, especially as the cost-of-living crisis remains high. Young adults are clearly feeling locked out of saving. Many may see young friends and relatives struggling to get on the housing ladder or even begin saving because everyday costs are so demanding.
“Disengaging from setting up saving habits can have long term consequences, with a quarter (24%) of those we surveyed saying they regret having not started saving sooner. Accessible financial guidance can make a real difference by helping young people build confidence and resilience with their money. Employers are in a strong position to support this and make a difference. By making clear, practical financial guidance available in the workplace and raising awareness of the saving tools employees can use, employers can help shift young people from a ‘can’t save’ mindset to one of confidence and progress. Done well, this support is not just about helping young people respond to today’s pressures, but about building understanding and habits early, before disengagement takes hold.”
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