The IPOD (insecure, pressurised, over-taxed and debt-ridden 18-34's) generation enjoyed a privileged outlook that is now being ripped from beneath their feet forcing them to face up to the reality of debt and poor finances, new research from Reform and the Chartered Insurance Institute (CII) has revealed.
According to the research, more than half of 18-34 year olds have debts
of as much as £10,000 and almost a third have no savings at all as their childhoods were set in a time of high expectations about future wages and financial security.
However, the research suggests that unless financial services, the Government and banks reach out to young customers, 'things can only get worse.'
A fastpaced, entertaining method of explaining financial information is required from financial institutions, the report explained. Financial products such as pensions
need particular attention as IPODs confess to being confused.
Without action by financial institutions
to put an end to this, the UK could see an "ever-increasing distrust of government and financial institutions coupled with a lack of capability to do anything about it."
And, as generation IPOD struggles to pay back debts, secure a mortgage
, and cope with increasing inflation, it could become a 'generation of victims.'
However, action from the Government and financial institutions can stop this, the research says. With the correct information and method of explaining this financial information the Government could create an 'empowered saviour generation' who feel capable of taking control of their own finances.
In fact, the research from Reform and the CII goes as far as to suggest that with effective teaching, the IPOD generation could "create new capability and lead a pathway out of the financial crisis."
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