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LV= Insights

Peter Pan Generation

28 November 2018

Showing signs of putting off growing up, the Peter Pan generation are living longer and staying ‘young’ longer and almost half (43%) do not feel confident that they could handle a personal financial crisis if one were to happen.

What is financial resilience?

Financial Resilience describes the capacity to recover quickly from an unexpected financial or income shock. The Money Advice Service (MAS) recommends that people have 90 days' of outgoings in savings to be financially resilient. If you have more than 90 days' of outgoings in savings, you're one of the lucky ones and would be considered financially resilient.

If not, you join 51% of the Peter Pan generation who do not have the MAS recommended savings to fall back on.

In addition, more than two in five of Peter Pans are not confident in their ability to handle a personal financial crisis, again far higher than the UK average.

Meet the Peter Pan Generation
39% citing credit card debt as the biggest source of their debts, which is 3x the national average

Made up of 30-35 year olds, of which there are nearly 4.7 million in the UK – the Peter Pan generation are putting off major milestones as they don’t feel financially mature enough.

Debt is a big issue in this group with almost two fifths (39%) citing credit card debt as the biggest source of their debts which one and a half times national average.

What’s next?

Change needs to happen to help the Peter Pan generation feel better prepared and financially resilient if an unexpected income shocks were to happen.

It should be compulsory for mortgage brokers to have a conversation with customers about protection when they’re looking to buy a house to ensure they’ve safeguarded their biggest assets.

With low financial confidence and little provision to handle a financial crisis, there is a need and opportunity for advisers to help this generation with their financial planning so they feel more secure. When it comes to the life milestone of buying a new home, advisers are ideally placed to include protection in every mortgage conversation with clients.

Justin Harper Head of Marketing LV=
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Products to consider

Budget Income Protection

Our Budget Income Protection is a great solution for cost conscious clients. We’ll pay any one claim for a maximum of 24 months, and the great news is your client can make as many claims as they need.

With budgets being tight with the Peter Pan Generation, Budget Income Protection from LV= could be the answer to protecting their income at a more affordable price.

Find out more about Budget Income Protection

Income Protection

We believe everyone should be supported if they are ill and unable to work, with quality financial protection that pays out when it matters. Our Income Protection cover pays an on-going, regular benefit for up to 60% of your client's income, helping minimise the cost and impact ill-health can have on clients (and their families).

It is important that your Peter Pan clients safeguard their income if they were ill and unable to work with quality financial protection that pays.

Find out more about Income Protection

A tool to help you

With this group being the least financially resilient, educating them on what is available for them if they were to be out of work due to accident or sickness is extremely important. Their credit cards debt and bills will still need paying.

The LV= Risk Reality Calculator is there to help your clients understand the changes of them being out of work, even though they may think their risk is low, to bring to life what could happen in those circumstances.

An example of how our calculator breaks down the risks...

illustration of the risk calculator results

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LV=, County Gates, Bournemouth, BH1 2NF, UK