The future’s bright in the eyes of Millennials with many willing to work hard and save carefully to get there.
Our research into this key segment of 18 to 34 year-olds, highlights their determination to lay down the foundations for financial security later in life. Many from the cash-savvy Millenial demographic already have a clear idea of what they want out of life. For instance:
• More than one in 10 (11%) Millennials say buying their first home is their biggest goal within the next two years.
• Around one in 15 (7%) say starting a family is their biggest goal, while a similar number (7%) are keen to travel and one in 20 (5%) are already planning to get married.
• But many also show a strong sense of financial nous and are able to acknowledge what they need to do if they are to reach their goals, nearly half (45%) managing to save at least a quarter of their disposable income every month. That compares to just a third (34%) of their parents’ generation (35-55-year-olds).
• Around one in three Millennials (32%) admit that a lack of disposable income, lack of savings (32%) and not enough annual salary (35%) mean they are struggling to meet their goals within their self-impose two-year timeframe.
• Despite any financial restrictions, nearly half (49%) of all Millennials are optimistic for their financial future, while only one in five are (19%) number are pessimistic about it.
But Paul Russell, Director of Analytical Solutions at Experian, urged lenders to do what they could to better understand and support the valuable Millennial demographic and its long-term financial contribution.
He says: “It is encouraging to see that Millennials are out-saving their older counterparts, with even fewer members of this generation falling into debt. While this is positive news, households can still be affected by wider changing circumstances that could impact their ability to save, pay off debts and manage credit commitments.
“One in 10 Millenials, for example, is planning to buy a house within the next two years and for lenders, it’s worth understanding how much the increasing cost of living and a possible interest rate rise would impact them. With many of their parents’ generation approaching retirement age, how will these particular factors impact them?
“Regulatory developments have brought into sharper focus the need to have a deeper understanding of customer behaviour and circumstance. This represents challenges for lenders and service providers who need to assess affordability, both now and in the future.”