Less than a fifth (19%) of Gen Z adults aged 18 to 24 are financially independent from their parents or other relatives, a report indicates. Only around half (49%) of 18 to 24-year-olds surveyed said they are able to afford basic living expenses from month to month.
Research findings
The research was carried out by the Personal Finance Research Centre, University of Bristol, in partnership with StepChange Debt Charity and funded by NatWest Group. Among all age groups, just over half (57%) are financially independent from parents or other relatives, according to the research.
Half (51%) of 18 to 24-year-olds said they would not be willing to use AI (artificial intelligence) for financial tasks, which was broadly in line with the national average of 49%.
Credit reliance among young adults
StepChange also found that, among its own clients aged 18 to 34, more than two-fifths (44%) had borrowed money to cover their housing costs. Around half (49%) of 18 to 34-year-old clients surveyed were not earning enough to cover their essential costs. Three-quarters (75%) of StepChange clients aged 18 to 34 in the survey had first used credit before the age of 21.
Vikki Brownridge, chief executive at StepChange Debt Charity, said: “For many young people, the promise of adulthood is financial independence, stable work and the chance to build a secure future.
“Increasingly, however, that aspiration is out of reach. Even for those entering their 30s, huge housing costs are preventing many younger adults from taking important financial steps forward, delaying independence and making it harder to build financial resilience.
“Combined with a challenging jobs market, growing reliance on credit from an early age and continued economic uncertainty, younger generations are facing acute financial pressures.
“Worryingly, our findings suggest these challenges are even more acute among the youngest adults.
“This report underlines the need for greater support to help younger adults build financial resilience, access affordable housing and get the help they need before debt problems become entrenched so early on in their lives.”
Pandemic legacy and future outlook
A third (34%) of 18 to 34-year-olds across the UK said the coronavirus pandemic has had a negative impact on their career progression, compared with just 23% and 16% among those aged 35 to 49 and 50 to 64 respectively.
Lead author Jamie Evans, research fellow at the Personal Finance Research Centre, University of Bristol, said: “Six years on, young adults are still feeling the legacy impacts of the pandemic, in terms of their careers, their personal finances and their health and wellbeing.
“On top of this, cost-of-living pressures are not letting up, meaning that consumer credit is often bridging the gap between income and essential outgoings for young adults.
“Without early support, these debts can quickly escalate.”
Haydn Williams, head of financial health and support at NatWest, said: “This research provides important insight into the financial challenges facing younger adults today and the factors that can shape their financial futures.
“The findings show how housing costs, income insecurity and early reliance on credit can combine to create significant barriers to financial resilience and independence.”
The report drew on several data sources, including StepChange client data for 71,000 adults aged 18 to 34 who received advice in 2025 and a YouGov survey of more than 4,200 people across the UK in August and September.
A Bank of England survey of lenders, published last week, indicated that defaults on credit cards are also expected by banks and building societies to increase in the three months to the end of November. The Credit Conditions Survey also indicated that credit card defaults increased in the three months to the end of August.
Karim Haji, global and UK head of financial services at KPMG, said last week that the Bank of England figures “suggest that some households are continuing to lean on credit while simultaneously finding it harder to manage existing debts”.
