Over a third of graduates in the UK regret going to university

The insurance company has released a report called “Generation Regret” on Wednesday, highlighting the finances of the millennial generation.

Of the those between the ages of 18-35, 49% believe they could have got to where they are today without their degrees. The research was published days before hundreds of thousands of A-level students find out whether they received the grades they require to get into university.

A third feel they have to carry more of a financial burden for higher education than older generations. University fees have tripled to £9000 compared to £3000 six years ago. Millennials between the ages of 18-24 estimated it will take them 12 years to pay off their student debt, with 18% are hoping it will be wiped out completely in future.

An overwhelming majority of graduates (72%) are relying on one-off events to help them financially at some point in the future. For 36%, this will be a new job or promotion, while 30% are relying on being given money either such as through a family inheritance, 12% expect to receive a financial gift and 17% are hoping to win the lottery. A total of 48% of millennials borrow money from their parents in order to cover living costs such as food shopping and rent.

“The financial hangover from university has led many in this age group to question whether in hindsight they made the right decision and how much value it has brought to their current position. With relatively low disposable incomes and significant debt to tackle, millennials don’t have it easy when managing their finances,” said Aviva’s customer propositions director, Louise Colley.

Over one in three millennials feel their generation has been priced out of the property market with 40% of them renting a place to live and 52% living with family. Recent research by the Resolution foundation found that millennials will pay as much as £53,000 in rent before their 30th birthday. House prices have risen by more than a quarter from £166,606 in 2006 to £211,230 this year according to the UK house price index. Thus, 4% say that not being able to buy a house is their single biggest worry for the next five years.

The EU referendum has taken its toll too, leading to a spike in the number of those concerned about their financial futures to 48%, compared to 25% before the vote.

“Millennials are plagued with uncertainty about the outlook for their financial futures, an issue which has not been helped by the uncertainty of today’s economic and political climate” said Colley

Colley gives advice on millennials’ financial woes can be dealt with in the short term.

“Learning how to manage their money effectively and prioritising saving where possible – even if it is just small amounts – can help people to feel more confident and in control of their future prospects. Industry and government must also take steps to reduce the gap in financial confidence between young and older people with policies that help those struggling to achieve their goals” said Colley.

The study was condemned by universities which cited the 86% satisfaction rate found by the annual national student survey covering the same period. They also argue that Aviva’s findings were based on a narrow survey of 2000 people aged 18-55 as part of its family finances report.

Official statistics from the government’s 2015 Graduate labour market statistics show that graduates are more likely to be in work and earn much more than non-graduates over a working lifetime. The wage gap within the working population between graduates and non graduates is £9500 and within the younger population is £6000.

The National Union of Students (NUS) has condemned the government’s policies on financing higher education. “The £9,000 fees system is a failed experiment and has not driven up quality or sustainably funded institutions as promised. We urgently need to review this unsustainable funding system which will force students into a lifetime of debt” said NUS president Sorana Vieru.