Young people are more than twice as likely to feel a serious financial impact as a result of COVID-19 than those aged over 60, official figures show.
The Official for National Statistics said its research shows that people aged 16-29 were also more likely to report a negative impact on their mental health, too.
The ONS said that 30% of 16-29 are ikely to report an impact on their finances, compared to 13% of those aged 60+.
The figures show that among young people with financial worries, a loss of income (84%) and being unable to save (38%) were the most common problems.
Dawn Snape, Assistant Director of Sustainability and inequalities Division at the ONS, said younger people were “generally more optimistic about lockdown”, with more than half expecting life to return to normal within six months.
But she said: “While they were more optimistic, young people were much more likely to report being bored and lonely during the lockdown period, and 42% of them reported that it was making their mental health worse.”
Among young people with financial worries, a loss of income (84%) and being unable to save (38%) were the most common problems.
Rachael Griffin, tax and financial planning expert at financial services specialist Quilter, said that not only are almost one in three young adults reporting a financial hit due to COVID-19, but many young people will be really worried about their career prospects too. She said: “If they’re just entering the workforce then it is obviously a difficult environment to be looking for your first job.
“And for those already in work, they have less experience on the CV to give them confidence that they will be able to find a new position if they are made redundant.
“That means that many of them are particularly worried about the risk of a loss of income.”
Griffin also said that it is also likely that younger people will have fewer financial resources to fall back on if they face financial difficulties, whereas older age groups are more likely to have savings and assets they can rely on if they suffer a loss of income.
She said: “It is a financially difficult time for many people, but especially for young adults.
“For obvious reasons, young people are less likely to have had an opportunity to build up substantial savings. And they may also have sizeable borrowings, such as a large mortgage if they’ve recently bought a home with a large loan-to-value ratio.
“The most important thing they can do to try and give themselves a sense of financial security at the moment is to ensure they have some cash savings set aside for a rainy day.
“Figures from the Money and Pension Service suggest that around 11 million people have less than £100 in savings. That isn’t going be enough if you experience a loss of income. As a consequence, people may find themselves borrowing to meet day to day costs, which is where problems arise.”