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 18–24-year-olds agree 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, told Money Marketing 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.
The research discovered they are 28% more likely than the average adult to say they are no good at saving money – 34% agree compared with 26% of all adults.
They are 20% more likely than the average adult to say that buy now, pay later services allow them to manage their budget better.
And 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, 18–24-year-olds are struggling financially more than others,” she said.
“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.”
She said it is “not surprising” that they are less likely to engage with long-term planning as a result.
“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,” Macey continued.
“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.
“This means sweeping aside assumptions and working smarter with first- and third-party data to find out what these younger audiences care about, where to reach them, what influences their decision-making, and how to generate cut-through.”
The data is from Kantar Media’s latest GB TGI survey, carried out between March 2023 and February 2024.
Its a shame the solutions you suggest are so wide of the mark and the interpretation of data, which I would love to check, is taken out of context. Not a helpful article at all, more a sales pitch.
Totally agree!!
I have said a lot on this recently – MM is full of self promoting product/service seelers who provide – btw – cheap copy for EMAP or whoever owns MM at the moment??
Note that the sellers are never in the thick of it… usually just offering plausible platitudes or why their subjective views are helpful…
How many can give instant IHT relief? – I can…
no ifs, buts, or ongoing charges… but am not sure it is AI compatible…sigh…
How many sub 25 years old would be happy about retirement – they have their lives to lead and enjoy?!
Club 18 – 30 had little to do with financial planning , more family planning 😀 …
Who wants to commit valuable drink and drug vouchers for the future? After all… saving is the opportunity cost of postponing more now for much more later… good luck with charges and a bloated industry to feed!!
Two main things stand out – i. Most IFAs are too old to talk to 18-22 year olds, &, ii. the vast majority of the packaged supply side offers cradle to grave packages so their staff don’t have to think about saving (much)… guess who pays for all this…
Time for MM editorial to get out more, cut the self reflection, and get involved – really!!!
These findings are no surprise at all. Retirement for most 20 year olds is at least half a century in the future. Their priorities today are buying a car, travelling abroad to see the world, establishing a career, buying a home, getting married and starting a family. Where does retirement planning fit into all that? Leave it, for now, to AE in a WPS.