Downturn makes people postpone key life plans for 2009

The economic downturn is tightening its grip on everyday life. According to new research from CreditExpert.co.uk, 36 million (75 per cent) UK adults have put or are planning to put on hold key life plans for 2009, such as moving jobs and having a baby. Furthermore, over half (55 per cent) of all adults are feeling anxious about reaching their goals in life, mainly due to concerns over affordability.

The research investigated the impact of the economic downturn on UK adults' life plans over the next 12 months and it shows that people have become highly cautious. 50 per cent are putting off buying a car, 30 per cent are holding off from buying a property and more than a quarter (27 per cent) are cancelling any plans they had to change jobs. For younger people especially, the economic climate is having an impact on their plans to start a family, with almost a quarter (23 per cent) of 25-34 year olds putting off trying for a baby. In addition, 21 per cent of 18-24 year olds and 12 per cent of 25-34 year olds are postponing setting a wedding date.

Jim Hodgkins, Managing Director of CreditExpert.co.uk, said: "There's no doubt that uncertainty about future financial security for many people right now means putting plans on hold. One certainty is that those who are actively managing their money and understand their credit commitments can better plan for their future. Those that are holding off on pursuing their plans because they're worried about being refused a loan or credit should check their credit report to ensure nothing is keeping them from pursuing their life goals."

Affordability is a key reason why people are postponing life events, with almost half (47 per cent) saying they just can't meet the extra expense. Nearly one in ten (nine per cent) are not going ahead with their plans because they're worried about being refused a loan/credit.

The study of a representative sample of more than 2,000 UK adults also reveals the strain that postponing plans is having on people's own feelings and relationships with others. In fact, four out of ten people say that postponing plans has strained relationships with friends, family, partners or colleagues.

Jim Hodgkins continued: "When the time comes to put your life plans back on track, understanding your credit report can put you in a stronger position to address your borrowing needs. CreditExpert.co.uk provides you with a summary of your credit history, free phone advice from credit report specialists and alerts you to significant changes on your credit report."

Generation game

As far as different generations go, people aged 35 to 44 are the most likely (83 per cent) to postpone key life events over the next 12 months, with those over 65 the least likely (58 per cent) to put their plans on hold. It's set to be a bumpy start to adult life for 18-24 year olds, with four in five (81 per cent) claiming they're putting off key life events, such as studying (25 per cent) due to the economic downturn.

North/South divide

When it comes to UK regions, a North/South divide emerges, with those in the North more affected by the climate than their Southern counterparts. 81 per cent of people living in the North West and North East say they are postponing key life events in light of economic conditions, compared to just 66 per cent of those in the South West and 74 per cent of those in the South East.