A new report finds millennials will earn much less during their twenties and face higher costs of living.
According to a report by The Resolution Foundation, millennials now face lower salaries and higher costs of living as they begin their careers. The study, entitled 'Stagnation Generation: The case for renewing the intergenerational contract', claims millennials will earn up to £8000 less in their twenties compared with Generation X.
The report claims this would be the first time a generation would earn less than its predecessor.
Torsten Bell, Director of The Resolution Foundation, says the future must guard against complacency.
"We've taken it for granted that each generation will do much better than the last - earning more and enjoying a higher standard of living," he says. "But that approach risks looking complacent given the realities of recent years and prospects for the future."
The Resolution Foundation's report also discovered millennials faced higher costs of living and would pay £44,000 more in rent before they reached 30 years old.
Laura Gardiner, a Senior Researcher and Policy Analyst, says the UK must tackle its housing problem to help millennials.
"Britain's continuing failure to build enough homes means that unless we change course the struggle of young people to own their home is only going to get worse."