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Industry Insights
June 11, 2024

Many younger people reluctant to engage with long-term financial planning

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Wealth of Advice
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Younger people are increasingly reluctant to engage with long-term financial planning, research by Kantar Media has revealed.

The study found that this year just 38% of 18– to 24-year-olds agreed that financial security after retirement is their own responsibility. This is down from 47% in 2020.

In addition, only 35% of this group say they are looking forward to their retirement, compared with 40% of adults as a whole.

Managing director of TGI & Insight for the UK and Ireland, Rachel Macey said younger people are hitting important milestones in life later than previous generations – be it buying a house, getting married, or starting a family.

The research also found 46% of 18- to 24-year-olds say they are very good at managing money, compared with 55% of all adults.

They are 26% less likely than the average adult to agree that they only take out credit/loans when absolutely necessary.

They are also 30% less likely than the average adult to say that before making any big outlay they think about it for a while.

They are 20% more likely than the average adult to say that buy now, pay later services allow them to manage their budget better.

They are 21% more likely than the average adult to say that they are finding things very difficult on their present income – 16% say this compared with 13% of adults as a whole.

“Overall, 18– to 24-year-olds are struggling financially more than others,” Macey said.

She added: “They are more likely to turn to credit and use buy now, pay later services, and less likely to believe that they are very good at managing money.

“This data highlights both a responsibility and an opportunity for financial institutions and employers to engage younger generations on financial security and long-term planning.

“With the cost-of-living crisis creating immediate financial concerns, and the perception that retirement is a dot on the horizon, marketers will need to give extra firepower to their messaging about financial products when targeting young people.”

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Matthew Sinclair (left) and Chris Breward (right), Chartered Financial Planners at Wealth of Advice