54% of young adults ‘say finances have recently affected mental health’

A recent study of 2,000 UK adults by Flagstone & Opinium found that:

* While 44 per cent of the youngest adult generation (Gen Z – those aged 18 to 29) is reliant on parental or grandparental support to feel wealthy, it is Millennials (those aged 30 to 45) that are most dependent: 46 per cent of Millennials admit that feeling wealthy wouldn’t be an option if they didn’t receive financial support from parents or grandparents.

* 40 per cent of UK adults say that, while their incomes are ‘good’, they still feel financially squeezed. The experience of financial difficulty despite earning well rises significantly among Millennials, 55 per cent of whom share this sentiment. It is also high among Gen Z adults but falls away among older generations: Gen X (37 per cent of those aged 46 to 61) and Baby Boomers (27 per cent of those aged 62 to 80).

* Only a third of (36 per cent) of UK people feel ‘wealthy enough’. Baby Boomers are the most likely generation to feel this way, with 44 per cent agreeing with this statement. The enthusiasm ebbs away for young generations (36 per cent of Gen Z and 35 per cent of Millennials). But the generation least likely to feel wealthy enough though is Gen X: only 28 per cent of them feel sufficiently well-off and only 18 per cent of them feel ‘wealthy for their age’ (vs. 29 per cent average).

Katie Horne, banks relationship manager at Flagstone, said: “For many, life feels more expensive than ever. Items and services we used to take for granted feel unaffordable and aspirations for greater financial security can feel out of reach. It’s unsettling to see such high levels of financial discomfort among all generations. But the data puts into particularly sharp focus the financial anxieties of Millennials – the ‘squeezed middle’ – for whom the costs of family life are often still abundant, ‘forever home’ mortgages still need paying, and retirement finances need to be planned and stashed away.

“It’s startling to see the realities of how extensively and for how long the bank of mum and dad is relied upon. We’re used to hearing about how young people are taking longer to leave home or moving back into the family home as working age adults. The financial dependency, however, of older adults on their parents is now coming into focus.

“The feeling of financial insecurity is often an all-consuming one that can have a hugely detrimental impact on a person’s mental, emotional and physical health. The antidote to financial insecurity starts early. If only every GCSE Maths student was taught the power of compound interest. Even the smallest savings habits can produce big results.”