Nearly three-quarters of the capital’s 3.5 million millennials are at risk of suffering the financial effects of Covid-19 – and nearly a fifth face serious money woes – according to a new data analysis, which should trigger alarm bells across both the public and private sector.
Metrix Data Science has previously defined 11 different groups of millennials in London, and has now analysed the segments to determine which of these consumers are likely to struggle the most.
It reveals that while 20- to 40-year-olds are at very low risk of suffering serious health effects from the coronavirus, many are likely to be suffering financial meltdown.
In two of these groups – amounting to 17% of the capital’s total number of millennials – the risk of financial devastation from the pandemic is high.
• Young warriors (280,000 in London) – Educated and financially sophisticated group who are nonetheless prevented from realising their potential due to monetary constraints. Lots of these millennials rent and work in service jobs badly affected by the virus, such as restaurants and gyms.
• South of the river (315,000) – Likely to be mortgage owners who live in terraced houses. The majority of this group live alone and just over a quarter have dependent children. Many work in jobs affected by the virus, and were shielded by furlough and mortgage holidays, but perhaps not any longer.
Metrix Data Science managing director Bill Portlock explained:“Our analysis is vital for a range of organisations, as it identifies which of London’s millennial citizens will feel the worst financial effects of the pandemic and which will remain more secure.
“Organisations will benefit from being aware which consumers will be changing the way they live their lives, and may need support in the near future.”
According to the analysis, nearly three-quarters (72%) of the capital’s millennials have a high or medium risk of suffering the knock-on financial effects of the pandemic.
Meanwhile, a minority are at low risk of financial difficulty. These include Tech Warriors, Streets of Gold and Knightsbridge Knights.
According to recent research by fintech Plum, millennials such as these have actually managed to increase their level of investments since Covid-19 struck.
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