Be sure you have an independence plan

LIFE can get complicated when you hit your early thirties, which means your finances are starting to get serious.

You might be in the middle of countless transitions, like moving up in your career, starting a business, buying a home, getting married, having children… and a whole lot more.

A study reveals that people in their early thirties are putting off life milestones, such as having children or buying a home, due to being one of the least financially resilient groups in the UK.

A quarter of the 30 to 35-year-olds in the study, of which there are 4.7 million in the UK, feel worried about the financial impact of life milestones – double the national average.

Nearly one in six say they’ve put off major life milestones because they don’t feel financially mature enough.

The great advantage of being in your thirties is your age – you may still be some 30 years or more from retirement and have plenty of time to right the excesses of your twenties.

The potential downside, however, is that if you don’t act now, these mistakes could colour your future financial health. Worryingly, seven out of ten under-35s believe their youthfulness will last forever , so they don’t properly prepare for risks the future may hold.

The study also found that more than 70 per cent of this age group fall short of the Money Advice Service (MAS) recommended amount of savings to be financially resilient, versus a national average of 56 per cent.

The research revealed a further one in five in their early thirties don’t know how long they would be able to cope financially if they found themselves unable to work – for instance, due to illness or an accident.

Despite this, fewer than one in 12 working adults have their own income protection insurance in place.

These findings – that many of those in their early thirties are delaying major life milestones because they feel worried, unconfident and ill-prepared financially – are very concerning.

And it is worrying that so few can withstand the financial effects of an unexpected income shock – they have no plan a, nor a plan b.

Previously, younger generations would likely inherit their parents’ estate while relatively young, but increased life expectancy means this is no longer the case. 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.

Information based on our current understanding of taxation legislation and regulations. Any levels and bases of, and reliefs from, taxation are subject to change. Tax treatment is based on circumstances and may be subject to change in the future.

Although endeavours have been made to provide accurate and timely information, we cannot guarantee that such information is accurate as of the date it is received or that it will continue.

No individual or company should act upon such information without receiving appropriate professional advice after a thorough review of their particular situation.

We cannot accept responsibility for any loss as a result of acts or omissions.