Speaking in November, The Economist’s Bagehot columnist put it best when analysing the typical social consequences of an economic slump: ‘adults are not hurt until they are fired; the young are hurt when they are not hired’.
As the hopeful prospects of an economic recovery slip further over the horizon, there is widespread concern that the woe’s currently plighting Britain’s young – or the ‘Lost Generation’ as they’ve been labelled – will continue to linger on for many years to come.
After all, it’s easy to label the lost generation as sacrificial victims during this second economic slump: high unemployment figures amongst 18- 24 year olds continues to create national news, while the lack of affordable housing makes investing in property increasingly difficult for first-time buyers
Economists say one of the social consequences of the dip-deep recession has resulted in thousands of 18-30 year olds asking for financial support from their parents; reverting back to the ‘Bank of Mum and Dad’ if you will. With Mums and Dads providing essential financial cover to debt-ridden graduates, first time buyers and those left in the dark by crumbling pension plans, for example, it’s being argued that the young’s woes are stopping parents from planning for their own futures; delaying the purchase of life insurance policy or mortgage insurance, for example.
However experts believe future planning should still be considered even if spending remains squeezed. They say parents should not be put-off taking out financial products, such as critical illness cover, mortgage insurance and life insurance, as these packages can ultimately benefit their children in the future.
Life insurance coverage, for example, is relatively inexpensive, requiring small contributions each month in order to uphold premium coverage, and will pay out in the circumstance of the holder’s death.
Many of the UK’s largest financial services firms include extra ‘gifts’ with their products, attracting new customers to their services while being seen as adding value to the package.
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Source: L&G Protection
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