Think of a millennial, what springs to your mind? Women in ripped jeans and young men with man-buns and ironic glasses Instagramming a matcha latte? For these ambitious, intelligent, happy-go-lucky people born between the 1980s and 2000, life appears to be an ever-changing society associated with a collective identity. To their elders, this kind of society seems to be irresponsible.
Struggling to cope with harsh economic times
Of all responsibilities facing these young adults who are always on smartphones, their own health is among the most overlooked and daunting. As millennials leave their parents’ homes for the first time, abandoning their local doctor and having to find another health care provider probably in a city where they have moved for university or work, one thing they must worry about is losing their parents’ insurance cover.
A recent study conducted by Pure Cover reported that more than 50% of millennials (people aged 18 to 34) and around 56 percent of people under 25 years old find it too challenging to cover their expenses. In fact, they won’t be able to finance their medical costs and other expenses, such as rent and bills, if forced to quit their current jobs for an extended period.
The study further reveals that approximately 44 percent of all Brits couldn’t cover their daily household bills if they were to become too sick to go to work. The study also showed that 79 percent of people over 50 could survive even they lost their jobs. Unfortunately, according to this research, 56% of people at the age of 18 to 24 can’t survive such harsh times. What’s more, only a small percentage of millennials have the recommended precautions in place as preparedness for such possibilities. This is a clear indication that this generation is struggling financially.
Millennials seem to be the most educated cohort of young people compared to older generations. However, most of them leave university or college with a few job opportunities and debts. They struggle to begin both their professional and personal journeys. This could be the reason most them prefer to stay in their family homes. Indeed, they opt to defer marriage, house purchasing, and other milestones that are traditionally indicated the transition to adulthood.
These individuals have glowing optimism about their financial future. Most of them believe that they are more likely to earn enough cash in the future and successfully hit their financial goals. They also think that they will be in a position to save enough to finance their desired lifestyle.
Given these speculations, millennials appear to have low financial and insurance literacy compared to the older generations. They rarely work towards financial independence at a young age as their elders did. This young generation economically relies on parental support for a long time due to the harsh economic conditions they face as their careers take off.
Though they seem optimistic, a larger number of millennials worry about their financial future daily. For instance, most of them are worried about their own economic conditions and the ever-changing macroeconomic conditions as they have to face the rising unemployment rates and seemingly overwhelming debt levels. Now you understand why it’s challenging for millennials even to finance their medicals bills unless they have an insurance cover or fund a long-term investment just because they have other financial obligations to meet.
The bottom line is, millennials face overwhelming financial difficulties. The survey’s results regarding savings and financial precautions further indicate the challenges for a young generation that is struggling to keep up with the housing industry. Currently, the average age of the first-time homebuyer is about 30 years, which is seven years higher than that of the older generation.
According to Michael Charalambous of Pure Cover, millennials fall into financial pitfalls due to poor financial education and not a lack of responsibility. This generation has an opportunity and time to overcome its financial nightmare through financial education and effective planning. Besides, insurers must develop strategies that are up-to-date with the recent technology development and offer millennials a simple, smooth purchasing process they seek. They should also consider offering remote access to information that best fits this young generation.
