The people who are the most affected by the cost-of-living crisis are the ones who cannot afford to get enough groceries, pay their bills, and generally continue to pay their rent or mortgage in order to avoid debt and/or homelessness.
However, it is important to acknowledge that some people are not currently in poverty, but due to an inability to save money (experienced by 50% of Brits), they risk being in poverty in later years (1). This is particularly concerning for young people, who are facing much higher living costs than their parents and grandparents, despite wages not having increased by a huge amount (2).
Over 40% of young people say that it will soon be impossible for them to live independently, as they will only be able to afford their lifestyle if they live with family or friends (3).
Previous generations were able to buy houses at a young age, and this helped them later down the line. Currently, how will ‘generation rent’ ever manage to get onto the property ladder and secure a stable future for themselves and their families? (4)
This fear for the future explains why only 7% of 16-to-29-year-olds are not at all worried about the cost-of-living crisis. Perhaps this group are receiving plenty of financial support from their parents, but this is certainly not something every young adult gets.
Over half of young adults do not believe that they will be able to have a comfortable retirement when they are older. This is very concerning, as it demonstrates just how many young people believe that their financial challenges will be with them forever.
References
[1] COST OF LIVING CRISIS MEANS ALMOST HALF SAY THEY CANNOT AFFORD TO SAVE https://www.plsa.co.uk/Press-Centre/Press-Releases/Article/Cost-of-living-crisis-means-almost-half-say-they-cannot-afford-to-save [2] See the article: London Alcohol Rehab & Detox
[3] Half of young people don’t believe they’ll ever be able to retire comfortably https://www.bigissue.com/news/social-justice/half-of-young-people-dont-believe-theyll-ever-be-able-to-retire-comfortably-cost-of-living/ [4] The Truth Behind Generation Rent https://abcfinance.co.uk/blog/generation-rent-study/
Written by Keith Prance of Rehab Recovery
