One-quarter of young adults say the cost-of-living crisis is the leading cause of anxiety in their life, forcing them to reduce pension contributions and even to fear they may never start a family.
A survey of 1,000 young UK adults aged between 18 and 25 found rising energy bills (46 per cent), petrol (44 per cent) and food prices (43 per cent) hit their finances the hardest.
More than three-quarters (76 per cent) said they had been forced to change their spending habits to navigate the current financial landscape.
Going out less (54 per cent), shopping less (52 per cent) and reducing food deliveries (51 per cent) were among the sacrifices they had had to make.
Worryingly, 12 per cent believed they would have to reduce their pension contributions too, which rose to 27 per cent among young Scottish adults. One-third worried they would never be able to own a property or even start a family.
Vincent Belloc, managing director for PayPal UK, which conducted the research, said: “The cost-of-living crisis is impacting us all, but for Gen Z, it’s the first time they’ve had to battle soaring inflation.”
Despite these pressures, pollsters also found that 37 per cent of Gen Z adults were reluctant to give up on their healthy lifestyle and 32 per cent refused to give up socialising.
Cost of living: how to get help
The cost of living crisis has touched every corner of the UK, pushing families to the brink with rising food and fuel prices.
- The Independent has asked experts to explain small ways you can stretch your money, including managing debt and obtaining items for free.
- If you need to access a food bank, find your local council’s website using gov.uk and then use the local authority’s site to locate your nearest centre. The Trussell Trust, which runs many foodbanks, has a similar tool.
- Citizens Advice provides free help to people in need. The organisation can help you find grants or benefits, or advise on rent, debt and budgeting.
- If you are experiencing feelings of distress and isolation, or are struggling to cope, The Samaritans offer support; you can speak to someone for free over the phone, in confidence, on 116 123 (UK and ROI), email jo@samaritans.org, or visit the Samaritans website to find details of your nearest branch.
The top financial goal for one-quarter of Gen Z adults was not to have to worry before they looked at their bank balance.
The study also found that with an average of £320 left over at the end of each month, 51 per cent found it impossible to save money.
Mr Belloc added: “It is critical that we support young adults to reach their financial goals by sharing our experiences and advice and actively addressing any knowledge gaps.”
