Millennials feel less in control of their finances than any other generation, according to a new survey.
Of those born between 1981 and 1996, more than half say they are struggling to stay on top of their money, while 70 per cent said the cost-of-living crisis is having both short-term and long-term effects on their financial goals.
The results come as people across the UK are struggling to afford their energy bills, and food prices continue to rocket.
The Bank of England has predicted that inflation will rise to 11 per cent in October, while retail data company Kantar estimates that shoppers can expect to see their grocery bills increase by more than £500 this year.
A survey of 3,000 Britons, which examined how the cost of living crisis is affecting each age cohort, found that almost a third of millennials feel they have been “significantly” affected by rising prices – more than any other generation.
As a result, 65 per cent are placing more importance on planning for their financial future, while 53 per cent have cut back on luxury items.
Some are countering the crisis by picking up a side hustle (52 per cent), while 35 per cent have asked their employer for a pay rise.
Saving and investment app Moneybox, which commissioned the study, said the statistics on money management among the generation were “concerning”.
Just 28 per cent of millennials regularly budget their finances, and 27 per cent have a “rainy day fund” to help with emergency expenses.
Worryingly, more than half (55 per cent) said planning for retirement makes them feel anxious and overwhelmed, and 29 per cent said they have given little thought to how they will fund their retirement.
Additionally, if living costs continue to rise, 34 per cent may have to reduce their pension contributions, while 26 per cent said they’ll have to stop their retirement fund altogether.
Caroline Murphree, managing director of investing, retirement and savings at Moneybox, urged millennials to consider prioritising their pension funds, if their financial situation allows.
One big advantage of pension savings is that contributions are boosted by tax relief, and many employers will match your contribution.
“Even if you can’t afford to save as much as you would like towards long-term goals right now, history shows us that there will always be periods of growth and then periods of recession and so the key to success is not to lose sight of your future finances,” Murphree said.
“While saving for retirement is unlikely to be a top priority right now, taking control of your savings and learning how to plan early in life can make it so much easier to save what you will need for your ideal retirement.”