It’s normal to feel pressured to reach significant life milestones by a certain age. However, statistics show that achieving major life events at an older 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.
Economic, societal, and financial pressures significantly contribute to this shift, emphasising that there is no ‘right’ time to achieve life’s major goals.
It’s crucial not to be discouraged by societal expectations or comparisons. With this in mind, this article explores how individuals in the UK are managing debt and achieving their goals at different ages, offering reassurance that it’s perfectly normal to progress at your own pace.
Moving Out of the Family Home
The age at which adults move out of their family homes has risen significantly, from 21 in 2011 to 24 in 2021. 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.
While moving out later may seem like a setback, it provides an opportunity for young adults to save money, gain valuable life skills, and build stronger family relationships. Living at home can foster a supportive environment where young adults can plan their future more strategically and move out with greater financial stability.
Buying the First Home
The dream of homeownership is becoming ever more elusive. Housing affordability has worsened since 2004, with a notable decrease in the proportion of people who own their homes. For some context, the average age to own a home, either through a mortgage or outright, increased from 32 in 2004 to 36 in 2022.
From April 2022 to March 2023, 36% of first-time buyers admitted 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.
Despite these challenges, many first-time buyers are finding creative ways to achieve homeownership. The growing dependence on family gifts and financial support highlights the strength of relationships and the readiness to help one another.
Additionally, a greater understanding of the housing market and careful saving can empower prospective buyers to make informed decisions and find opportunities in a competitive market.
Becoming a 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% between 2010 and 2021, 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 a massive 84% of parents are dealing with more than one type of debt. Young adults aged 18-34 are more likely to be burdened by student loans, whereas 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.
Financial pressures can impact individuals at different stages of life. Young adults often juggle student loans as they start their careers, while those in mid-life balance family responsibilities, homeownership, and potentially caring for ageing parents.
Financial education and planning can aid individuals to manage their debts effectively. Additionally, seeking financial advice can provide practical solutions and peace of mind.
Conclusion
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.
