25% of 25-40 year olds say their attitude is to ‘live for the day’ while 33% live hand-to-mouth each month without putting any savings aside, according to Bright Grey’s Generation Now report.

However, both these approaches mean many have no savings for a rainy day. Instead, the main priorities for this age group include keeping up with mortgage payments or rent (43%), looking for a job that interests them (23%), planning their next holiday (22%) and funding a good social life (21%).

Only 6% would consider buying insurance as an immediate priority – meaning the overwhelming majority would have no way of paying for their regular outgoings if their income suddenly stopped.

16% of individuals in the 25-40 age group say they are aware of the importance of insurance, but cannot afford it at the moment.

Jacqui Gillies, head of marketing at Bright Grey, said: “Younger generations have adopted a more ‘live for the day’ approach to their financial priorities in recent years compared to their parents’ generations. However, they should also consider how they might continue to pay for their personal priorities – such as maintaining an enjoyable social life – in the event they were to find themselves unable to work because of illness.

“People sometimes think of insurance as an unnecessary expense, and take the ‘it won’t happen to me’ approach. However, with cover available at less than the cost of a trip to the cinema, consumers should really think about their priorities.

“Furthermore, aside from allowing people to continue with hobbies or maintain an active social life, insurance can help them to meet their essential financial obligations like mortgage payments or rent.”