The cost of reaching life milestones
Reaching big milestones – owning your first car, getting married, buying a home – are exciting markers of adulthood. But in today's world, they can also come with a hefty price tag.
To find out exactly how much these milestone moments can cost, we surveyed over 2,000 Brits about the average expenses associated with reaching some of life's biggest achievements.
With a third (33.4%) of Brits saying they feel pressured to reach certain life milestones, we also asked people if they have put off certain milestones due to the cost of living, and whether they would consider taking out a loan in order to achieve them.
The most expensive life milestones
When thinking about life milestones, one of the first things that might come to mind is buying a house. However, according to our survey, 15.2% of Brits have not and do not intend to buy a house, opting out of the property market entirely – potentially due to such high costs.
This isn't surprising when you consider the numbers: the average house price in England sits at a hefty £299,000, ballooning to £518,000 in London[1]. These figures dwarf the national average salary of £34,963, even with London's higher average salary of £44,370 struggling to keep pace[2].
So, with homeownership becoming increasingly out of reach for many, we wanted to find out what other milestones are putting a strain on wallets across the UK.
| Rank | Milestone | Average cost (£) |
| 1 | Taking retirement | £84,847 |
| 2 | University | £29,189 |
| 3 | Renovating your home | £27,780 |
| 4 | Starting a family | £21,431 |
| 5 | Wedding | £20,838 |
| 6 | Getting a divorce | £18,166 |
| 7 | Buying a first car | £14,720 |
| 8 | Engagement ring | £1,425 |
1. Taking retirement
Topping the list of expensive milestones is the cost of retirement, with our survey revealing that the average Brit has spent or plans to spend around £84,847 to retire. Many Brits will be adding to their retirement pots throughout their lives, either by paying money into a pension or setting aside their own savings for when they retire.
Regional variations play a part, with Brighton (£131,946) and Liverpool (£122,270) facing the highest average retirement costs. Meanwhile, Plymouth ranks as the most affordable retirement destination, with an average spend of just £40,680. These differences may reflect variations in housing costs, the overall cost of living, and regional wage levels, which can all contribute to the cost of retirement.
It’s important to save and plan for retirement early, which can help make your golden years more financially secure.
2. Attending university
Completing a university degree ranks as the second most expensive milestone, with Brits averaging £29,189 for their higher education.
This cost can again vary significantly by location, with students in London (£45,728) and Leeds (£44,448) facing the highest average costs, while those in Belfast (£6,420) spend the least.
When it comes to generational differences, Gen Z once again shoulders the highest prices, averaging a hefty £49,188 on costs relating to attending university. Meanwhile, Millennials (aged 27 to 42) spent over £10,000 less at £38,245. This is likely due to rising tuition fees over time, alongside potential increases in living expenses for students in recent years.
The life milestones Brits are putting off due to the cost of living
The rising cost of living is forcing many Brits to delay reaching major life milestones. Retirement tops the list, with the average person putting it off by a significant 3.9 years. This financial burden is felt most in Bristol (5 years) and London (4.6 years), where residents face a longer wait for their golden years.
Buying a first home comes in a close second, with Brits delaying this milestone by an average of 2.5 years. Liverpool and Bristol residents (both 2.9 years) are feeling the squeeze the most when it comes to stepping on the property ladder. In terms of generations, Gen Z is postponing homeownership the longest at an average of 3.2 years, highlighting the growing difficulty for younger generations to enter the housing market.
Starting a family ranks third, which Brits are putting off by an average of 2.1 years due to high living costs, with Liverpool (3.1 years) and Brighton (2.7 years) delaying the longest.
| Rank | Milestone | Average number of years delayed |
| 1 | Taking retirement | 3.9 |
| 2 | Buying your first home | 2.5 |
| 3 | Starting a family | 2.1 |
| 4 | Wedding | 2.0 |
| =5 | Renovating your home | 1.7 |
| Getting engaged | 1.7 | |
| =6 | Buying a car | 1.5 |
| Learning to drive | 1.5 | |
| 7 | Going to university | 1.4 |
| 8 | Getting a divorce | 1.2 |
The pressure to reach life milestones
Many of us feel excited at the prospect of reaching certain milestones in life, but there can be a lot of stress involved too. Our survey found that a third (33.4%) of Brits feel pressured to reach certain benchmarks, whether it be homeownership or marriage.
This pressure is particularly strong among Gen Z, with over half (54.5%) feeling the heat. This compares to 27.4% of Gen X and just 11.3% of Baby Boomers who reported feeling pressured to reach milestones. This could signal a potential shift in societal expectations and the growing challenges younger adults face in achieving traditional milestones.
How many Brits have considered taking a loan out to reach milestones?
As we’ve explored above, reaching certain life milestones can be a significant financial hurdle. And with a third of Brits feeling pressured to reach these milestones, despite their potentially high costs, it may not be a big surprise that nearly a quarter (24.2%) of Brits admit to considering taking out a loan to bridge the gap and achieve these goals. This option isn't for everyone, though, with nearly half (46.3%) stating they haven't considered a loan.
Gen Z is most likely to consider a loan (40.3%), compared to Millennials (35.8%) and Gen X (20.7%). Gen Z were also most likely to feel pressured to reach milestones, so they may be keen to achieve milestones quickly, even if it means going into debt.
Looking around the country, residents of Brighton (30.9%) and London (28.1%) are most likely to consider a loan for milestones. This isn't surprising, considering these cities are not only among the most expensive for reaching milestones like buying a home, but also have high percentages of residents feeling pressured to achieve them (37.8% in London and 30.9% in Brighton).
While taking out a loan can be a tempting solution to reach milestones more quickly, it's crucial to weigh the financial implications carefully before taking on debt. Using a loan calculator can help you work out how much your monthly payments will be, as well as how much it would cost overall.
How to prepare for life milestones
Life milestones are exciting, but they can also be daunting financially. To help you reach your goals without unnecessary stress or debt, we’ve shared some tips on how to prepare for important milestones.
1. Start planning early
The sooner you start saving and planning, the better. Even for seemingly distant milestones like retirement, starting small and taking advantage of compound interest can make a big difference.
2. Set realistic goals
Be honest with yourself about what you can afford. Research the average costs associated with your desired milestones and adjust your savings goals accordingly.
3. Understand borrowing options
There are situations where responsible borrowing can help bridge the gap and accelerate your progress towards a milestone. A personal loan is one option, but it’s important to only take out the amount you need and be certain you can pay it back quickly to avoid high interest rates.
There are other types of loan available for specific circumstances, such as:
- Car finance: This can be a good option if you need a new car but aren’t able to pay for it up front. Car finance spreads the cost of the car over a set term, typically requiring you to pay a deposit, followed by monthly repayments.
- Wedding loans: Designed specifically for wedding expenses, these loans can help cover the costs of your venue, vendors, and other necessities. Like with car finance, wedding loans let you borrow the amount you need then spread the cost with repayments over a set term.
- Home improvement loans: If you're looking to renovate your kitchen, bathroom, or another part of your home, a home improvement loan can be a smart option. These loans can be secured by an asset like your property, potentially letting you borrow more than unsecured loans like personal loans.
Remember, any loan adds debt, so it's crucial to weigh the pros and cons carefully before borrowing any amount of money.
The content written in this article is for information purposes only and should not be taken as financial advice. If you require support on the products discussed here, please speak to your bank/lender or seek the advice of an independent professional financial advisor. We also have more information on our Customer Support Hub.
Methodology
All data is taken from a survey of over 2,053 Brits carried out in May 2024.
[1] https://www.gov.uk/government/news/uk-house-price-index-for-january-2024
[2] https://www.thetimes.com/money-mentor/income-budgeting/average-salary-london-uk
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