Pain of 'negative wealth' will hit gen Z in later life, study warns

A third of adults aged between 25 and 34 have debts that outweigh their assets, says thinktank

- James Tapper

Gen Z and young millennials are battling a "negative wealth" problem due to growing debt burdens that limit their life chances, according to a Fairness Foundation analysis.

The thinktank says negative wealth, where debts outweigh assets, is linked to lower wages and worse health in later life, and that ministers should reintroduce the Child Trust Fund to give young people a greater stake in society.

"Right now, too many people across the UK are living without a financial cushion or are burdened by debt," said Will Snell, the Fairness Foundation's chief executive.

"This strips them of resilience in the face of economic shocks and shuts them out of the well-documented benefits that even modest asset ownership brings, in terms of future earnings and employment, physical and mental health, and civic engagement."