Despite money matters putting Britain's younger generations off tying the knot and flying the nest, today's under 25's anticipate buying their first home before their grandparents did, according to new research by engage Mutual.
The research reveals that financial limitations are causing under 25 year olds to delay moving out of the family home by three years and getting married by four and a half years, compared to older generations. However, with growing acceptance of debt, and despite escalating property prices, under 25 year olds anticipate buying their first home almost a year ahead of their grandparents.
As part of its 3GB campaign, exploring how finances impact the experiences of generations, engage Mutual questioned a GB representative sample of 2,300 adults about their aspirations and experiences. The results reveal that whilst under 25 year olds may be struggling to move on in life, they are accepting debt to get a foot on the property ladder.
key findings
moving out later - one third (34%) of Britons under 25 anticipate waiting until they are at least 24 before being able afford to move out of their parents' home. Today's retirees fled the nest three years earlier at the age of 21
- more than eight in ten (84%) retirees moved out of their parents' home by the time they were 25, in contrast just two in three (67%) of under 25 year olds already have or are anticipating moving out of home before they are 25
delaying marriage - the younger generation are putting off marriage for financial reasons; under 25s are expecting to be able to afford marriage at 27.7, three and a half years later than their grandparent's wed (at 23.2).
- 85 per cent of today's retirees were married by the time they were 30. Today, just 55 per cent of under 25 year olds have married or anticipate being able to afford to marry before they are 30.
moving into property - embracing the property market, under 25 year olds expect to be able to afford to buy their first home at 28 nine months before their grandparents set foot on the property ladder*.
- embracing the property market, under 25 year olds expect to be able to afford to buy their first home at 28 nine months before their grandparents set foot on the property ladder*.
changing times for Scotland
The Scots have seen the greatest transformation in their experiences of home buying. Retired generations in Scotland waited until they were 32, longer than any other region, to buy their first home. Today's young Scots are the most optimistic, expecting to buy a home by the age of 27.
Karl Elliott, 3GB spokesperson for engage said:
“Young people today face a very different financial landscape than today's retirees faced forty years ago. With consumer debt at an all-time high, 125 per cent mortgages readily available and credit at our fingertips, today's young generation has become more accustomed to living with debt. As a result, attitudes to financial milestones are changing.”
“While it is encouraging to see that today's under-25s are not put off by ever-increasing house prices, it is important that they are as prepared as possible when it comes to savings. By putting away a little and often over the long-term, both parents and off-spring can cope better with the financial milestones to come.”
footnotes:
*Under 25 year olds anticipate being able to afford to buy a home at 28.75. Retirees brought their first home at 28.01.
engage Mutual Assurance can be contacted on 0800 169 4321 or by visiting www.engagemutual.com
The information contained in this press release is intended solely for journalists and should not be relied upon by private investors or any other persons to make financial decisions.
notes to Editor:
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this research was undertaken by YouGov on behalf of engage Mutual Assurance. The survey was conducted between the 23rd and 25th January 2007 across a representative GB sample of 2,312
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if using this article on a website, please link to www.engagemutual.com using the following hyperlink text : engage Mutual Assurance - meeting the changing needs of today's modern families
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engage Mutual Assurance is a trading style of Homeowners Friendly Society (HFSL) and it's wholly-owned subsidiary engage Mutual Funds Limited (EMFL).
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engage Mutual Funds Limited (EMFL) is a provider of the Child Trust Fund direct and in partnership with partners including Legal and General, ASDA and Debenhams stores.
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The organisation is title sponsor of the engage Super League which sees 12 teams from across the UK and France battling for a place in the engage Super League Grand Final at Old Trafford stadium in Manchester. The teams are Leeds Rhinos, Wigan Warriors, Bradford Bulls, Castleford Tigers, St Helens, Huddersfield Giants, Hull FC, Salford City Reds, Wakefield Trinity Wildcats, Warrington Wolves, London based Harlequins RL and French team Catalan Dragons.
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engage is proud to partner a charity which shares our consideration for balancing risk and reward - Smart Risk Foundation UK. It helps youngsters across the UK to identify the risks in their everyday lives in the smartest way, so that they can enjoy life to the fullest. Smart Risk Foundation's registered charity number is 1096081, www.smartrisk.org.uk.
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engage Mutual Assurance is headline sponsor of the engage International Open 2006 and the engage Ladies World Matchplay 2007, both part of the World Bowls Tour.
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engage supports mutuality, friendly societies and the regional financial services industry through links with the Association of Mutual Insurers, the Association of Friendly Societies, Mutuo and Leeds Financial Services Initiative.
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established in 1980, Homeowners Friendly Society Limited (HFSL) is Registered and Incorporated under the Friendly Societies Act 1992, Reg.No.964F, it's wholly owned subsidiary engage Mutual Funds Limited (eMFL) is Registered in England No 3224780. Both are authorised and regulated by the Financial Services Authority (FSA).
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Homeowners Friendly Society Limited's FSA Register number is 110072 and engage Mutual Funds Limited's FSA Register number is 181487. You can check this on the FSA's Register by visiting the FSA's website www.fsa.gov.uk/register or by contacting the FSA on 0845 606 1234
