We’re a Peter Pan generation
Cash-strapped young forced to put off buying home and having family
A PETER PAN generation in their early 30s is too financially insecure to shoulder the responsibilities of a home and family, research reveals today.
They are shunning marriage, mortgages and children until they are much older than adults did 40 years ago, fearing they have neither the salary nor savings they need.
As many as 1.2 million of the UK’s 4.7 million 30 to 35-year-olds are concerned about the financial impact of responsibilities and 17 per cent have put off decisions like saving for a pension because they do not feel financially mature enough.
In his research, commissioned by insurer LV=, Dr David Lewis, an associate fellow of the British Psychological Society, found seven out of 10 under-35s believe their youthfulness will last forever so they do not prepare properly for risks the future may hold.
Calling them the “Peter Pan generation” after JM Barrie’s book about the boy who never grew up, Dr Lewis said: “There are multiple reasons this age group isn’t properly preparing for financial risks.
Denial
“A universal emphasis on the importance of ‘staying young’ means many people are in a state of denial or avoidance when it comes to facing up to the future.
“We also tend to talk within, rather than across, generational groups, which encourages us to focus inwardly on the present, not the future.
“Previously, younger generations would likely inherit their parents’ estate while relatively young but increased life expectancy means this is no longer the case.”
Dr Lewis warned: “By not giving proper weight to their financial status, this group could be at risk of finding themselves with a significant level of responsibility without adequate financial preparation or protection.”
Almost three quarters (73 per cent) of this age group fall short of the Money Advice Service recommended amount of savings to be financially resilient, as opposed to a national average of 56 per cent.
And a further fifth admit they do not know how long they would be able to cope financially if they found themselves unable to work .
The trend to delay life’s milestones is apparent in a series of official statistics. In 1968, the average age a couple married was 23.8 for men and 21.7 for women. By 2015 it was 33.9 for men and 31.7 for women. Many more now are deciding not to wed at all. Office for National Statistics figures show more than half of women under 50 have never been married – double the figure recorded 30 years ago.
Thanks to fertility treatment, more women are delaying starting families until they are 40. In the 1980s the typical first-time home buyer was 29. Today that is 38 and by 2025, the average age will be 41, according to LV=.
Justin Harper of LV= said: “It’s deeply concerning that many of those in their early 30s are delaying major life milestones because they feel worried, unconfident and illprepared financially. And it is worrying that so few of the Peter Pan generation can withstand the financial effects of an unexpected income shock. They have neither a Plan A nor a Plan B.”