How does your money stack up against your peers? New interactive tool allows young people to compare their finances

5 October 2018
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While millennials are less likely to own a home than ten years ago, they are also less likely to be in debt, but how do you compare?

The Office for National Statistics (ONS) has released an interactive calculator to compare the financial situations of 18 to 29-year-olds in the UK.

We used the example of a 23-year-old earning £21,000 a year, renting, with savings of £2,000 and £1,000 of debt.

A 23-year-old earning £21,000 a year is considered to be on an above average salary when compared to other people in the 18 to 29 age bracket.

Their living situation is shared with the majority of people (41.6%) aged 22 to 29.

Savings of £2,000 are seen as above average, while a debt of £1,000 is seen as below average.

The calculator asks for you age, earnings living situation, savings and debt. The age ranges are from 18 to 21 and 22 to 29. Once you have entered your details you can compare how well you are doing financially to other people your age:

Fall in home ownership

Analysis from the ONS shows that those aged 22 to 29 are less likely to own a home or have money saved compared to ten years ago.

The figures show that the proportion of millennials who own a home fell 10 percentage points from 37% to 27% between 2008 and 2017.

Between 2014 to 2016, more than half (53%) of 22- to 29-year-olds had no money saved in a savings account or an Isa, compared with 41% in 2008 to 2010. However, those who did had an average of £1,600 put away, up from £900.

Debt has also fallen for young people. Not including student loans, 49% were in debt between in 2008 to 2010, which has now fallen to 37%. However, those that are in debt owed fractionally more (£1,900), on average, than in 2008 to 2010 (£1,800).

Ross Boyd, founder of mortgage platform Dashly, says the figures are a “brutal reminder” of the struggle young people face getting onto the property ladder.

He says: “With house prices in so many areas of the country out of people’s reach, the transition from Generation Own to Generation Rent is accelerating by the day.

“To rub salt in the wound of many young people today, monthly rental payments are often considerably more expensive than the equivalent mortgage payments would be.”

He adds: “This partly explains the increase in the number of people with nothing in a savings account. With inflation above target for so long, and rents so high, many young people have nothing left to put aside.

Comments

In reply to by anonymous_stub (not verified)

Savings only tell half the story, especially if you want to buy a house in the south east.You could have a £50k deposit but if you only earn £30,000 a year the bank manager would laugh you out of the office because your pathetic millenial salary wouldn't even get you very far!

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