Current affairs form a strong case to protect exposed younger homeowners – Bamford

And yet, if we consider where the brunt of this uncertainty is likely to land, you’d be hard-pressed to find a group more exposed than younger workers – especially those under the age of 35 who are entering or progressing through the workforce at a time when change feels like the only constant.

Right now, one of the major external factors creating turbulence is the impact President Trump’s US trade tariffs will have on the UK economy. How are these tariffs going to impact British exporters and, in turn, what will be the knock-on effects for British businesses and their workers?

It’s a classic ripple effect scenario. Margins get squeezed, companies look to cut costs, and often that manifests in reduced headcounts or delayed hiring. For younger employees who may still be in probationary roles, lower on the seniority list, or working in more precarious gig economy-type positions, this poses a genuine risk to income security.

Feelings of uncertainty

It’s no surprise, then, to see new research from Best Insurance showing that 26% of adults fear losing their jobs within the next 12 months. That figure jumps even higher among younger age groups and renters, many of whom are at the earliest stage of their careers and are still building their financial resilience.

Sponsored

Shawbrook is the specialist mortgage sector’s ‘best kept secret’ – Sard

Sponsored by Shawbrook Bank

These are the very people who would benefit most from income protection, yet they remain one of the most under-represented groups when it comes to actually having cover in place.

We’ve seen over the last few years that income protection isn’t just a theoretical product for a worst-case scenario; it’s a very real safety net that many clients have relied upon during job losses, illness, or long-term absence from work.

Those who had policies in place speak overwhelmingly of the relief they felt not having to worry about missing mortgage payments or household bills while trying to get back on their working feet. It gave them breathing room and, in many cases, allowed them to return to employment on their own terms.

The stability provided by income protection

The under-35s, though, remain significantly under-protected. There are many reasons for this, of course. Cost is an issue – though often the perception of cost is higher than the reality. But the bigger issue is mindset. The idea that ‘it won’t happen to me’ is pervasive and, let’s be honest, entirely understandable.

When you’re healthy, just beginning your career, and possibly still renting or in your first home, protection doesn’t feel urgent. And unless someone spells out exactly what could happen and how protection can help, it often ends up on the ‘maybe later’ list.

This is clearly where advisers come in. In today’s market, advice needs to be holistic, and protection discussions shouldn’t be an afterthought. They need to be baked into the initial conversation, not tacked on at the end.

There is a very strong Consumer Duty imperative here too. We talk about good customer outcomes – well, what’s a better outcome than knowing your client will still be able to pay their mortgage if their employer suddenly needs to make cutbacks?

Especially if those cutbacks are due to macroeconomic policy changes or international events entirely outside their control.

Advising for the precariousness of being a young professional

At Qualis, we’re acutely aware of the changing nature of the homeowning demographic, particularly the challenges faced by younger borrowers. That’s why we’re working closely with insurers and distribution partners to develop and support protection products that reflect the working patterns, affordability constraints, and lifestyle priorities of this generation.

Whether that means more flexible terms, tailored underwriting, or education-driven support materials for advisers, our focus is on building solutions that advisers can offer with confidence – and that clients can see real value in.

We also have to think about how volatile the job market has become. Many younger clients are in sectors where redundancy rates can be high, or on contracts where security is minimal. Add to that the growing burden of student loans, rising mortgage payments, and inflation still hovering above comfort levels, and it becomes obvious how vulnerable some of these borrowers could be.

As advisers, you will no doubt have plenty of examples where clients have been incredibly grateful for the cover they never thought they’d need. Income protection has, quite literally, kept roofs over heads. It has bought peace of mind, preserved credit ratings, and given people a path back to stability. And yet the uptake among younger adults remains patchy at best.

That’s an opportunity for advisers. Not in the hard-sell sense, but in the sense of helping clients truly understand the risks, and more importantly, the solutions.

Especially now, with global economic headwinds gathering pace, we owe it to younger clients to ensure protection is not an afterthought but a core part of the advice process. Because if the worst does happen, and it could, they’ll remember the adviser who helped them stay afloat – just as much as they’ll remember the one who didn’t mention it at all.