Three Quarters of Young Adults Say Hard Work Pays Off Less Than It Did for Their Parents

The traditional belief that working hard will eventually deliver financial security is being challenged by a generation facing high housing costs, student debt and economic uncertainty.

New research has found that 76% of UK adults aged 18 to 34 believe hard work does not pay off as much as it did for their parents’ generation, while more than a third question whether hard work contributes to financial success at all.

The study of 1,000 UK adults, conducted by The Harris Poll UK, paints a picture of younger people who remain ambitious but increasingly believe the financial milestones traditionally associated with adulthood are moving further out of reach.

Seven in ten young adults worry they will not achieve key financial milestones, while 63% believe they will need a financial gift or inheritance to accomplish at least some of their goals.

More than half – 53% – believe they will never be able to afford a property without help from their family.

Hard Work No Longer Seen as a Guarantee of Financial Success

The findings suggest younger adults increasingly believe their financial prospects are determined by forces beyond their individual control.

Some 77% identify the global economy as an influence on their personal financial success, while 76% point to family background and wealth.

The UK economy is cited by 75%, with 72% identifying the housing market as an important factor.

Perhaps most strikingly, 34% of 18 to 34-year-olds do not believe hard work contributes to financial success at all.

That doesn’t mean younger generations have abandoned conventional financial ambitions, however.

Home ownership remains a goal for 85% of those aged between 18 and 34, while financial security and having savings remain closely associated with the idea of financial success.

The problem is that many expect to achieve those goals considerably later than they would like – if they achieve them at all.

Home Ownership and Financial Independence Moving Further Away

Almost eight in ten – 79% – believe buying a home is harder for their generation than it was for their parents.

Another 78% believe achieving financial independence has become more difficult, while 70% are concerned about being financially prepared for retirement.

The research also reveals a growing gap between the age at which young adults would ideally like to reach important financial milestones and when they realistically expect to do so.

On average, respondents expect to achieve home ownership at the age of 36.2 – 3.8 years later than their ideal age.

Financial independence is expected at 37, representing a 4.4-year delay, while young adults anticipate having an emergency savings fund at 37, around 3.5 years later than they would like.

Around 7% believe some financial milestones may never be achievable.

‘Bank of Mum and Dad’ Becoming Increasingly Important

One of the clearest findings concerns the growing role of family wealth.

Almost two-thirds – 63% – of younger adults believe they will need a gift or inheritance to achieve at least some of their financial objectives.

Nearly a third of 18 to 34-year-olds currently receive financial assistance from family, increasing to 40% among those aged 18 to 24.

Overall, 47% of younger adults say they continue to rely on parents or their wider family for some form of financial support.

And it isn’t simply help with a house deposit.

Families are reportedly contributing towards everyday costs including groceries and clothing, as well as providing cash allowances.

Housing nevertheless remains one of the areas where intergenerational wealth can make the greatest difference. More than half – 53% – of younger respondents believe they will never be able to buy a property without financial assistance from their family.

That raises wider questions about inequality between young adults who have parents able to provide financial support and those who do not.

More Than Half Have a Second Job or Additional Income

The findings also challenge any suggestion that younger adults are simply unwilling to work for their financial goals.

More than half – 53% – have a second job or another income stream to help support themselves financially.

Despite those additional efforts, 57% fear they may have to continue working until they are 70 before they can afford to retire.

Student finance represents another significant burden, with the research finding that 26% of under-35s have more than £50,000 in student loan debt.

Older generations appear to recognise that the economic environment has changed.

More than three-quarters – 77% – of adults aged 45 and over believe younger people face greater financial barriers and that achieving financial independence is harder than when they themselves were starting out.

Meanwhile, 81% believe parents are increasingly expected to financially support their adult children.

Financial Success Is Increasingly About Security Rather Than Status

The findings also suggest that younger people’s definition of being financially successful is evolving.

For 83%, quality of life matters more than wealth alone.

Building wealth remains associated with financial success for 44%, while 43% cite earning a high income and 41% consider being able to support a family an important measure.

But security, independence and the choices that money can provide are becoming increasingly important.

Technology is helping with the everyday management of money, with 89% of younger adults saying digital banking tools give them greater control over their finances.

Apps can make budgeting, saving and monitoring spending considerably easier, but they cannot solve structural challenges such as housing affordability or wider economic uncertainty.

The findings therefore suggest financial providers face a changing customer landscape in which traditional messages about saving and working hard may no longer be sufficient.

For younger consumers, financial planning is increasingly taking place against a backdrop of delayed home ownership, multiple sources of income and greater reliance on intergenerational wealth.

And while the ambition to become financially secure hasn’t disappeared, the path towards achieving it appears increasingly different from the one travelled by their parents.

Further research and findings: The New Shape of Financial Success – The Harris Poll UK