Millennials Set to Suffer in Post-Pandemic Economy
Millennials’ finances are set to be the worst affected by the Covid-19 pandemic, according to a new study by TransUnion. Over three-quarters (76%) of this generation (born between 1981 and 1995) globally are already feeling the economic impact of the crisis – the highest percentage across all demographics (TransUnion, 2020).
The survey also revealed the areas in which financial hardship is taking its toll. Worldwide, 22% of this demographic have lost their job, 45% have had their working hours reduced and 31% report they have a partner who’s been financially affected due to Covid-19. In all of these categories, millennials report higher percentages of impact over all other demographics.
Shelter tops the list of millennials’ financial concerns, with almost two-thirds (63%) worrying about paying their rent or mortgage, compared to an average of 54% across all other generations.
TransUnion also took a deeper look at US millennials’ financial landscape, revealing a higher rate (61%) of this cohort than other generations have contacted companies they have an account with to negotiate payment options. However, as only 13% of this demographic have a plan of how to pay their bills and loans, their financial organisation lags behind other age groups.
As millennials already have a misguided financial outlook, there’s a real need for banking institutions to step in and offer accessible advice and services to prompt financial behavioural change – as discussed in Bespoke Banking, part of our Spotlight Trend The Future of Money.
Look out for our upcoming Financial Wellness report, which will explore the economic innovations and key influencers leading the way for consumers to rebuild their financial security post lockdown.