More young people are living with their parents than ever before.
The bank of Mum and Dad has evolved into the hotel of Mum and Dad, with roughly 1.7 million adults aged 24-34 now living in the family home, up 450,000 since 2006, according to the IFS.
Living with parents, which can gradually feel ever more like a box for all parties, is more likely in London and other parts of the country where living costs are considerably higher; and while younger men (12%), are more likely to live with their parents than younger women (5%), although there is no clear explanation why.
This societal shift has been slowly occurring over the last two decades as house prices, rising rents, inflation and stagnant wages have made homeownership harder, if almost impossible, for many young people to achieve. First-time buyers are now stepping onto the housing ladder later in life, if at all, at the grand old age of 34; meanwhile, saving for a deposit now reportedly takes between eight and 10 years. Renting for life may become the norm for many.
PROTECTION INDUSTRY CHALLENGES
These challenges are not just affecting Gen Z, Millennials and Zillennials either – they are changing the way society has traditionally worked. And for the protection industry, this poses something of a problem.
For GenZ, the usual triggers are changing. The traditional pillars of protection – buying a house, getting married, having children – are happening later in life. For some, they are not happening at all. The goalposts are moving but is the industry keeping up?
Protecting income in order to pay the rent is now just as important as safeguarding a mortgage, but the protection industry hasn’t worked out how to communicate this yet. Similar goes banking – most people have a bank account, even those who still live with their parents, but how many banks sell protection?
Understanding what Gen Z like, and don’t like can help change the narrative. So too, can changing the ways things are done.
According to speakers at the recent annual ProtectZ event in London, all of whom were under the age of 30, Gen Z like healthy living, less alcohol, better food, and fewer one-night stands.
They also have a falling trust in traditional institutions and a growing reluctance to use smartwatches due to an aversion to be “on” 100% of the time.
When it comes to social media and financial services, young people follow people – not companies. They also use words like slay, lit, salty and snatched. They like to go home at 5pm, assuming they made it into the office in the first place. And they also like Tik-Tok and AI – but is has to be authentic.
AUTHENTICITY IS VITAL
So, if we want to reach, engage and educate younger audiences, then boring compliance ridden posts from stuffy organisations are unlikely to “slay” it.
Authenticity is crucial, as is the need to explain ‘why’ certain actions or products might be needed. Telling people what to do or what the products do is simply no longer enough.
Gen Z may not be treading the same path as the generations before, but that doesn’t mean they don’t understand value.
Life goes in circles, around and around, and the fact is, things change, often in the blink of an eye, and usually when we don’t even realise it. Whether that’s attitudes, trends, technology, or people, change is inevitable in an ever-evolving society.
Which means the protection industry needs to change too, especially when it comes to engaging with younger people. Understanding their needs by listening to their views and joining their discussions, could prove enlightening. Not doing so, is no longer an option.
