Millennials are twice as likely to become bankrupt than baby boomers, new research reveals.
In 2017, the number of insolvencies amongst millennials – those under 25 – increased by 20 per cent to 5,650 (4,710 in 2016). However, insolvencies amongst baby boomers – those over 65 – fell 10 per cent that same year to 4,580 (5,050 in 2016).
House price inflation appears to be the main cause of the widening wealth gap, with millennials spending a greater percentage of their salary on rentals and mortgage payments, leaving them with little cashflow to support them if they lose their job, for instance.
Since the start of the 2008 financial crisis, millennials have had to take on unmanageable levels of debt just to get onto the property ladder. And since the recession, the research shows that 4.3 in 10,000 over 65s and 9.6 in 10,000 under 25s went insolvent in 2017, making it more than twice as likely that a millennial will enter insolvency than a baby boomer.
Personal insolvency can be an overwhelming and stressful experience. Before taking that painful step, expert advice should be sought so that all options can be considered. If there is no alternative, then an understanding insolvency practitioner can make the process as painless as possible.
Our experts at our partner business BM Advisory can help. Whatever your situation, the sooner you contact us the more options you will have available to you. Your initial consultation is free of charge, and you can rest assured that it will be in total confidence. To find out more or to discuss your specific circumstances, please contact Andy Pear or Mike Solomons.
We also cannot reiterate enough the importance of putting in place a sound financial plan early in your career in order to optimise wealth and plan ahead in case that monthly pay packet ceases to arrive. For more information, speak to Steve Govey or your usual Beavis Morgan Partner about how we help you plan for the future.