Gen Y delaying life decisions

Despite anecdotal evidence to the contrary, Australia’s Generation Y is not frivolous, over-protected and ambitious while seeking instant gratification without hard work, according to the latest AMP.NATSEM report released today.

Instead, the research has found they are a generation delaying making major decisions such as having children or buying a home, with only 35 per cent saying they believe having children is important to them today while 77 per cent say it will be important when they are 35.

Similarly, the data reveals that home ownership is also down amongst Generation Y when compared to Generation X at the same age, with 38 per cent of Generation Ys either owning or paying off a home compared to 47 per cent of Generation X.

Commenting on the data, AMP Financial Services director, product manufacturing, Craig Meller said Generation Y could not expect to be automatically guaranteed a comfortable later life, needing to factor in the impact of life decisions.

“They do plan to have children and buy a home, just later than their predecessors — in their 30s instead of their 20s,” he said. “But Governments and businesses need to start to factor in the implications of this delay.

“Gen Y needs to diversify and accumulate more assets now to prepare for later life and retirement,” Meller said. “This means looking beyond housing purchase and towards other forms of investment as well, no matter how little the initial contribution may be.”