29 March 2012

Economic Climate Puts Young Brits 'Life In Limbo'

A staggering two thirds of Brits (65 per cent) have been forced to put important life decisions on hold due to the current economic climate.

Research by price comparison site, MoneySupermarket, has revealed those aged 18-34, often considered the 'prime age' as far as important life changes are concerned, have had to put the most on hold; 17 per cent have put off buying a house (four years on average) and 10 per cent have delayed the sound of wedding bells by an average of three years. In addition, eight per cent have been forced to postpone having their first child by an average of three years.

The comparison site also found the overall top areas people have put on hold are travelling (32 per cent), home improvements (27 per cent) and short term saving (21 per cent). The average delay to the age of retirement for those that have had to put off retiring is five years.

Clare Francis, consumer finance expert, at the firm said: "The current state of the UK economy is forcing people to delay exciting and important life stages, such as having children or buying their first home. People are obviously feeling the strain from rising living costs and lack of pay increases - and as the research shows, it may take people a few years to get back on track.

"The 2012 Budget statement last Wednesday seems to have done little to help consumers. confidence to make important life changing decisions. In addition to this research, we ran a separate poll just after the Budget announcement which has revealed that 61 per cent of people feel they will be worse off as a result of the announcements made by Chancellor George Osborne."

The 'Life in Limbo' research went on to ask people what would need to happen to get their plans back on track; an increase in income (52 per cent) was the number one remedy, followed by 46 per cent who said the cost of living needs to reduce. A hopeful third (34 per cent) said they need to win the lottery while a third said paying off their debts and freeing up some funds would help to turn things around.

Those in Wales are most likely to have put off travelling (41 per cent) compared to Londoners (26 per cent). Women are more likely to forgo a holiday (38 per cent) than men (26 per cent) and this is also the case for long term savings, with 20 per cent of females putting off saving into a pension, compared to 13 per cent of their male counterparts.

Clare Francis continued: "You can fight back from living a life in limbo and take control of your financial situation - there are a number of ways to make savings without waiting for that big lottery win. By organising your finances and switching to the best deals available, significant savings can be made; enough to pay off debts or make everyday living more manageable."

(GK)