An overly optimistic outlook is leaving younger consumers exposed to potential financial shocks.
This is according to a poll of 2,000 adults from Vitality which indicated a generational divide in how risk was perceived.
Almost two fifths of Gen Z (born between 1997 and 2012) respondents (37%) believed protection insurance was not necessary for people aged 35 and under.
By contrast, only 16% of Baby Boomers (born between 1946 and 1963) shared this opinion.
Close to half of those aged 18–34 (44%) reported they were not worried about experiencing a serious illness and but only a quarter (28%) of those aged 55 and over also said developing a serious illness was not something they were currently concerned about.
The insurer said this suggested risk was consistently underestimated across life stages.
The research also found confidence was often not matched by financial resilience.
While many adults believed they could cope if something went wrong, 12% said they would only be able to cover essential expenses for less than a month if their income stopped.
This rose to nearly one in five (18%) among Gen Z, pointing to a narrow margin for error should illness or injury strike unexpectedly.
Andy Philo, director of strategic partnerships at Vitality, (pictured) said: “Our research highlights just how positively people view their long-term health. While that optimism is encouraging, it can sometimes mean people feel less urgency to check in on their health or think about how they would cope financially if something unexpected happened.
“Many common risk factors, such as high blood pressure, often develop without obvious symptoms, so how we feel day to day doesn’t always give the full picture. That can make it easy for important conversations to slip down the priority list.
“We believe protection should do more than simply pay out when things go wrong. It should support people throughout their lives by encouraging healthier habits, building financial confidence, and helping them make the most of every stage of life.
“Optimism can be a powerful starting point. For advisers, it creates a natural opportunity around key life moments to help clients turn that positive outlook into informed action, whether that’s staying on top of their health or putting the right financial plans in place for the future.”
.
