A new study from LV= 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.  Dubbed the ‘Peter Pan’ generation, too many of this age group feel financially insecure, so much so, that they don’t want to shoulder such responsibilities.

They’re shunning marriage, mortgages and children until they are much older fearing they have neither the salary nor savings they need.

A quarter (24%) of the 30-35-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 (12%). Nearly one in six (17%) say they’ve put off major life milestones because they don’t feel financially mature enough.

Separate research by Dr. David Lewis,  an associate fellow of the British Psychological Society revealed that seven out of ten of those under 35s believe their youthfulness will last forever, so they don’t properly prepare for risks the future may hold.

As a result, four in ten (43%) don’t feel confident about handling a personal financial crisis, with nearly three quarters (73%) fall short of the Money Advice Service (MAS) recommended amount of savings for financial resilience.

Further research revealed a further one in five (22%) 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.

The Money Advice Service (MAS) says that each year one million people in the UK find themselves unable to work due to serious illness and according to the UK labour market statistics published in August 2018 there were 2.03 million people who were not looking for work due to long-term sickness.

MAS warn that ideally, everyone should try to save enough money to cover three months of living expenses. Although, they acknowledge that it can take time to save up this amount of money. They advise that if you don’t have savings, income protection insurance might be a cost-effective way to protect yourself.

Justin Harper, Head of Policy for Protection at LV=, said: “Its deeply concerning that many of those in their early thirties are delaying major life milestones because they feel worried, unconfident and ill-prepared 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 no Plan A, nor a Plan B.

“With low financial confidence and little provision to handle a financial crisis, there is a clear need for a safety net - a form of ‘independence plan’.  Income Protection can give people peace of mind that they’d be financially protected if they were unable to work for a period of time.”

If you’re thinking about income protection, we could help. Through Essential Insurance, income protection could cost you less than £10 a month – even if your occupation is considered ‘more hazardous’ – if you’re a builder, rather than an office worker, for example.

Dr. Lewis commented: “There are multiple reasons this age group isn’t properly preparing for financial risks. 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. 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.”

To find out more about protecting yourself financially if you were unable to work because of an accident or serious illness, you can speak to one of our protection advisors on 0800 612 8005. We’ll help you to assess your needs, explain the options available and can help you put a plan in place if you decide that now’s the right time for you.