The cost of living crisis is forcing Brits to put off buying a home, getting married, having a child, or retiring.
A survey of more than 4,000 people across the UK carried out for Legal General, indicated that many people believe that increased living costs will have a long-term impact on their life milestones:
- 48% who were planning to purchase a home now estimate they will need to delay this goal, with 18% expecting to put off owning a home for at least five years.
- 64% said the current state of their finances is making them concerned about the future
- 56% feel they have already done everything they can to save money
- 30% said they no longer have a savings buffer to cover unexpected costs
Almost half of the couples who plan to get married or have a child are considering pushing pause on their plans.
There are also indications that financial help from parents could be reduced, with 39% saying that ‘the bank of mum and dad’ will no longer be able to set aside a lump sum to help their children.
For those nearing retirement age, 38% think they will have to delay giving up work for at least a year, while one in eight surveyed believe they will never be able to retire.
The survey also revealed the percentages of people in UK cities who believe that the cost of living squeeze will impact their life goals:
- Brighton, 73%
- Sheffield, 72%
- Norwich, 71%
- Nottingham, 71%
- Belfast, 70%
- Newcastle, 69%
- Cardiff, 67%
- Edinburgh, 67%
- Liverpool, 65%
- Plymouth, 63%
The UK Government recently announced a package of financial support to help people with the cost of living crisis and it is also looking at ways to make it easier for people to take their first step on the property ladder.
Emma Byron, managing director, Legal & General Retirement Solutions, said: “Rising living costs have been so significant that most UK households will have noticed a squeeze on their monthly budgets.
“Not only does this have a direct impact on people’s lifestyles, even though they are making every effort to cut back, but it has a knock-on effect on their lifelong goals such as owning a home or retiring comfortably.”