Under-25s ‘facing biggest financial challenge’

New research has suggested those aged 25 and under face some of the biggest financial challenges of any generation in British history.

Research car…

New research has suggested those aged 25 and under face some of the biggest financial challenges of any generation in British history.

Research carried out by First Direct has shown that if a young couple want to get married, buy a house and start a family – they would need to earn over £39,000 a year – 55 per cent more than their parent's generation.

House prices may be a particularly large factor in this, but the overall picture of greater indebtedness and larger financial pressures was made clear by the survey findings.

One of these was the view expressed by 76 per cent of respondents that young people today are the most financially-pressured generation ever.

And in addition to this, 35 per cent of those aged 25 or less said they had to borrow money just to deal with basic living expenses.

Such a situation may leave some needing debt management help, not least as the survey also found 40 per cent expect the amount they owe to rise rather than fall in the years ahead.

The financial situation is reflected in major life-changing decisions such as buying a house and starting a family happening later in life or not at all, although 34 per cent said the financial strains of today make them more determined to succeed in their careers and 68 per cent stated it will make them take decisions more carefully.

However, the debt and financial struggles of the young may be harder to deal with for many as they cannot find work at present, with the latest government employment figures showing 20.5 per cent of 16 to 24-year-olds out of work, nearly three times the level for the working population as a whole.
 

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