Report Reveals the UK is Achieving Life Milestones Later in Life
Statistics show that achieving major life events at a later age is increasingly common. Moving out of the family home, purchasing a first property, or becoming a grandparent are experiences many people now have later in life. Here, MoneyPlus reveal how the UK is reaching traditional life milestones later than ever before.
Moving Out of the Family Home
The age at which adults move out of their family homes has risen significantly, from 21 to 24. This change is largely attributed to the high cost of housing. According to the Office for National Statistics (ONS), the number of families with adult children living at home increased across England and Wales between 2011 and 2021.
This trend indicates a growing difficulty in affording independent living, driving young adults to remain with their parents longer than previous generations.
Buying the First Home
Housing affordability has worsened since 2004, with a notable decrease in the proportion of people who own their homes. The average age to own a home, either through a mortgage or outright, has increased from 32 to 36.
36% of first-time buyers admit to relying on gifts from family or friends to secure a home, compared to just 20% in 2003-2004. Average house prices increased in the 12 months to April 2024 by 1.1%. Additionally, average UK private rent increased by 8.7% in the 12 months to May 2024, with average rents in England reaching £1,301.
The Role of the Grandparent
With life milestones being reached later, the role of grandparents is also changing. Based on a study by the Institute for Fiscal Studies (IFS), in 2019, a third of families with children aged between 1 and 2 years relied on unpaid, informal childcare from grandparents.
The cost of part-time nursery care for children under 2 has increased by 60%, outpacing average earnings. This financial strain often means that grandparents step in to provide essential support.
Grandparents willing to provide childcare not only help to reduce financial strain on families but also build lasting relationships with their grandchildren. This kind of support system brings families closer together and allows grandparents to play a hands-on role in their grandchildren’s lives.
Debts by Age
Financial pressures vary significantly by age. A 2024 LV= survey of 4,000 UK adults revealed that 84% of parents are dealing with more than one type of debt. Adults aged 35-54 face financial challenges related to parenthood, mortgage costs, and the care of ageing parents. In this latter age group, 59% report struggling to afford day-to-day bills.
It’s increasingly common for people to reach life milestones later than might be expected. This is often due to high housing and childcare costs, alongside varying levels of debt depending on your age. Understanding these trends can help those facing financial difficulties find the right debt advice and support.
Achieving these milestones requires careful financial planning and often relies on the support of family and friends.
It’s important to remember that reaching milestones at your own pace can lead to more thoughtful and fulfilling life choices, so don’t rush. With the right support, you can overcome financial challenges and achieve your goals.
To navigate these financial milestone shifts here, MoneyPlus offers practical tips to help people manage their finances to be able to reach their goals:
Plan and Prioritise: Understanding your financial goals and creating a realistic timeline is key. Delayed milestones like homeownership can be managed more effectively with careful planning and prioritisation. Begin by assessing your current financial situation, setting clear goals, and working backwards to create a step-by-step plan.
Maximise Savings and Investments: The longer timeline for reaching milestones can be leveraged to build stronger financial foundations.
Seek Professional Advice: Navigating complex financial decisions can be daunting, especially when balancing multiple goals. Professional debt advice can help you manage existing debts more efficiently, free up resources, and provide you with tailored strategies to achieve your life milestones without unnecessary financial strain.
Stay Flexible and Adapt: Life doesn’t always go as planned, and financial strategies need to adapt accordingly. Regularly review your financial plan and adjust as necessary. Whether it’s adjusting your savings strategy or exploring alternative paths to homeownership, flexibility is key to long-term success.