"Forever generation" revealed by insurer

09/06/2009

Britons are facing big shifts in their lifestyle as a direct result of widespread money worries - leading to the creation of the "forever generation".

Landmark research from insurer Aviva suggested that people are paying off their mortgages later, retiring later and waiting for a longer time before their children moved out of the family home.

If present trends continue, the typical first-time buyer will be 41 years old in 2039 - well up on today's average of 34 years old.

Meanwhile, the state retirement age is scheduled to rise to 68 years old in 2046 - again a rise from the current 60 for women and 65 for men.

On the question of offspring staying at home, 300,000 more 20 to 34-year-olds were found to be living with their parents now compared with 2001.

Financial concerns related to stretching budgets are major factors behind all three trends.

Commenting on the research, Darren Dicks, head of annuity propositions for UK Life at Aviva, said: "There is a risk that without forward planning, today's young adults could end up in a work-to-live cycle for what feels like 'forever'."

He added: "If people have children in their 40s who then live with them into their 30s - a trend which is currently growing - people could be supporting their 'children' well into what has traditionally been a time to retire and relax."

Tags; Current UK Economy, Young Family Finances, Retirement Money Problems, Recent Graduate Debt,

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