Four in five UK adults believe younger generations are financially worse off than they were two decades ago, according to research from Hymans Robertson Personal Wealth, highlighting a broad consensus that the economic environment has become more challenging for those starting out.
The survey found that 80% of respondents think young people today face tougher financial circumstances than those who were at a similar life stage 20 years ago. More than half, 59%, cited the rising cost of living as a key factor, while 43% pointed to increasing housing costs as a major barrier.
Perhaps most notably, 74% of over-55s said that today’s young adults have a much harder time getting ahead financially. The findings suggest that perceptions of generational inequality are not confined to younger cohorts, but are shared across age groups.
The advice firm said the results point to a clear recognition that the financial landscape has shifted, with higher everyday costs and housing affordability pressures weighing heavily on younger workers.
Against that backdrop, it argues that employers have a growing role to play in supporting staff through practical financial education and access to savings tools.
Ollie Le Farge, corporate client manager at Hymans Robertson Personal Wealth, said: “It’s clear from our research that it isn’t just young people who feel their generation is under undue financial pressure.
“All generations recognise the financial strains that are leaving many young people vulnerable and reducing their motivation to build an emergency fund and save for the future.
“This is striking, as it is often assumed that each generation believes they had just as hard a time financially when they were young and ‘starting out’.
“Instead, there is a shared recognition across the population that today’s financial pressures on young people are particularly severe, especially as the cost-of-living crisis remains high.
“Young adults are clearly feeling locked out of saving. Many may see young friends and relatives struggling to get on the housing ladder or even begin saving because everyday costs are so demanding.
“Disengaging from setting up saving habits can have long term consequences, with a quarter (24%) of those we surveyed saying they regret having not started saving sooner.
“Accessible financial guidance can make a real difference by helping young people build confidence and resilience with their money. Employers are in a strong position to support this and make a difference.
“By making clear, practical financial guidance available in the workplace and raising awareness of the saving tools employees can use, employers can help shift young people from a ‘can’t save’ mindset to one of confidence and progress.
“Done well, this support is not just about helping young people respond to today’s pressures, but about building understanding and habits early, before disengagement takes hold.”
WORKPLACE SUPPORT IN FOCUS
The research also found that a quarter of respondents, 24%, regret not starting to save earlier, underlining the potential long-term consequences of delayed financial planning.
For advisers and employers alike, the data may reinforce the case for early engagement, particularly as younger workers navigate higher rents, elevated borrowing costs and stretched household budgets.
