Yesterday’s Yuppies become today’s anxious majority

Almost half (45%) of yesterday’s Yuppies say they struggle financially or fail to live within their means today.

Twenty years on from the height of the “Yuppie” phenomenon, marked by hit film Wall Street and Margaret Thatcher’s third term re-election, a bespoke survey by financial group LV= reveals that former high flying Yuppies or ‘Young Urban Professionals’ have become today’s anxious majority. Now well into middle age (45-55 years old), the buoyant and carefree images of Golf GTIs, giant mobile phones, filofaxes and glitzy dining out have given way to green concerns and the strains of everyday financial commitments, with almost half of yesterday’s Yuppies (45%) admitting they struggle or fail to live within their means today.

The research from the UK’s largest friendly society LV= reveals that half as many former Yuppies still spend money today on dining out compared with the 1980s (20% in the 1980s, 9% in 2007), and a third fewer buy the latest gadgets (18% in the 1980s, 13% now). In contrast, twice as many make regular charitable donations nowadays (21% versus 9%) and five times as many are environmentally friendly or eat organically (16% versus 3% respectively).

With financial commitments straining their purse strings 20 years on, seven out of ten (70%) former Yuppies acknowledge they should of saved more earlier in their careers, and nearly a third (32%) worry about how they would cope if their regular income stopped.

Nigel Snell, Communications Director of LV= said: “Our research on Yuppies has found that yesterday’s privileged minority appears to have become part of today’s anxious majority. Their concerns span not only their own financial and family commitments, but also the wider environmental and social agenda.

“Despite the champagne lifestyle and optimism of the time, our research reveals that many former high flyers have ended up no better off than the average midlife family. They are just as worried about meeting the monthly bills, the cost of bringing up their kids and how they will fund their old age.”

Just 15% say they now have more than £500,000 worth of assets including their home, and nearly half (46%) have less than £250,000 worth of worldly goods to their name.

Four out of ten former Yuppies (40%) admit they did not save anywhere near enough during their early career, and a further 30% say their savings fell short of what was needed.

Over half (54%) list saving for retirement in their top three financial concerns whereas only one in seven (14%) thought about it in their 20s and 30s.

Despite the optimism of the age, many of the up and coming professionals of the time have actually sunk down the salary ladder. Whilst four out of ten (42%) felt they were high earners for their age back then, just a third (33%) of those who currently work believe they are now and a further 35% of yesterday’s Yuppies now feel they are earning less than the average salary for their age.

A long hours culture early in their career hasn’t enabled many of yesterday’s Yuppies to control their work-life balance today. Half (48%) say they worked too many hours back then, and 35% still believe they do today.

At the height of the Yuppie era the car to be seen in was the Golf GTI, whilst Dire Straits ‘Brothers In Arms’ CD ruled the airwaves. Today the sporty hatchback has been replaced by a MPV, with Dido and Radiohead as ipod favourites for former Yuppies.

Today’s ‘Yuppies’ – a case of history repeating itself?

The study also reveals some stark similarities and telling differences between today’s young urban-living professionals and their late 1980s counterparts:

Today’s Yuppies are twice as concerned on the retirement front: 29% state saving for their retirement is one of their top three financial concerns compared with only 12% of original Yuppies;

However, 2007’s Yuppies also struggle to achieve a work-life balance, with 36% saying they work too many hours;

Today’s Yuppies are much more preoccupied than the last generation were about investing in property, with almost a third of Yuppies in 2007 concerned about saving to buy a property (28% versus 18%);

Debt is a bigger concern for Yuppies of today, with four in ten (41%) young urban professionals in 2007 citing paying off debts as a financial concern, compared with a third of Yuppies in the 1980s (31%).

The obsession with the latest gadgets has grown with 18% of yesterday’s Yuppies spending their money on gadgets compared with 24% of Yuppies today, but substituting the slimline blackberry for the old mobile ‘brick’ and filofax;

Green rather than greed is good for today’s Yuppie with 21% eating organically and 16% contributing to environmental improvements (compared with 3% of yesterday’s Yuppies for both).

Nigel Snell continues: “It seems that today’s Yuppies are at risk of following in the footsteps of their counterparts of yesteryear and not saving enough for the future. It is encouraging to see that long term saving is higher on the list of concerns. However, whereas nearly half of yesterday’s Yuppies surveyed were worried about paying off their mortgage, less than a third were worried about how they would cope if their regular income stopped. This obviously raises concerns and shows the importance of protecting yourself financially.

“We remember Yuppies for their power suits, lavish lunches and a live for today spirit, and many may well have thought the champagne lifestyle would never go flat. But at least the original Yuppie generation tended to have their parents to fall back on when financial difficulty struck. The next generation of young professionals no longer have the same level of family safety net, as their parents are likely to be equally financially stretched – but the older generation can at least play a vital role in encouraging their children to save more for the future.”