Millennials are worried about the security of their future
Young millennials are worrying more than ever about low wages, buying a home and paying back their degrees. A millennial is a person reaching young adulthood in the early 21st century and for most millennials, it has become a worrying period of time with floods of uncertainty arising. Millennials are facing collapsing homeownership rates, a drop in wages and continue to face painful, expensive degrees. But what do all of these realities mean? These trends combined are shaping the way young people feel and are behaving, and as a consequence, the UK economy is also affected.
According to a source on Financial Times, the shifts in pensions, housing and employment have transferred more risk and instability on to the “shoulders of young people”. there is a lot more pressure now in developed countries as well as undeveloped countries, the uncertainty is having an impact on the way millennials judge their future.
For a lot of young people, owning a home is very important. Now owning a property in your thirties is frightening as well as not knowing how much income will be earned throughout a lifetime to fund retirement. The country made a good decision by automatically enrolling employees into defined contribution pensions, however, the amount that is being paid in is far too small to fund a lifetime of payments. Not having a permanent employment contract also means that being offered a mortgage is virtually impossible.
To understand the economy of today we always need to be mindful of how young people have to deal with changing circumstances and laws. The expectations have remained the same, yet possibilities have shifted, and current times are making it more difficult to get off the mark.
Research shows that a generation living with uncertainty will hold on to whatever security they can due to fear and anxiousness. Research that has come from the Resolution Foundation think-tank shows that young people have become more risk opposed in the job markets than previous generations. Millennials are less likely to change careers despite unhappiness or move location in search of a new job. This news comes as ironic as the majority of the generation of today are graduates and renters, elements of a lifestyle that encourages free movement and promises.
The share of under-35s who move geographically for work has gone down by one-fifth since 2000 as a lot more millennials seek to stay close to family support networks just in case job insecurity arises. This level of anxiety endured by young people and less fluidity that is evident is desperately concerning and is suppressing wage growth since one of the best ways to secure a pay increase is to change employers.
Millennials are profoundly known as having a world of opportunities at their fingertips and are the best-educated generation ever, they are able to start their own business and become an entrepreneur from their home. The UK’s self-employed are more likely to be homeowners than renters and are more likely to own homes worth more than £500,000. When a person has something to fall back on they are much more likely to take risks.
For a lot of millennials, they have the security of inheriting their parent’s housing wealth in the future, so this can release slight pressure. Less than half of millennials who do not have their own home have parents that do and over 80% who do own their own homes have homeowner parents, too.
A level of security for millennials is unquestionably needed: a base level of certainty and a bright future needs to appear on the horizon sooner than later to build confidence and encourage risk-taking.
Written by Gemma Smith