"This offers advisers an opportunity to bridge that gap through conversations."
- Dan Simpson - Shepherds Friendly
Shepherds Friendly’s 'Reaching the unprotected 2026' research has found that workers aged between 18 and 24 are the most open to introductory conversations about cover, with 44% saying they are attracted by a free consultation.
In line with last year’s results, resistance to advice increases with age.
Income protection (IP) ownership among full-time workers is already highest in the 18 to 24-year-old category at 22%, despite knowledge of IP being lowest in that age group, with only 46% having heard of the product, compared to 86% of those aged 65 to 74.
The report also found that 51% of full-time workers aged 18-24 and 52% of those aged 25-34 said they would be more likely to consider a mutual IP provider after learning how mutuals operate.
Shepherds Friendly says that this enthusiasm among the younger generation offers advisers an opportunity, given that 68% of 18 to 24-year-olds cite accidental injury as their second biggest concern for future loss of earnings.
Indeed, 40% of full-time workers aged between 18 and 24 have been too ill to work at some point and have not received their usual earnings, the highest number of any age group.
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However, Shepherds Friendly also highlights how misconceptions around what IP covers persist among younger workers, as they are still more likely than the overall average to think IP covers redundancy or medical bills, or pays off a mortgage upon a claim.
57% of this age group also said they think lifestyle factors, physical or mental health, would prevent them from getting cover.
"It is encouraging that younger people are more open to starting conversations about IP with advisers, but it is clear there is still a significant understanding gap," Dan Simpson, chief commercial officer at Shepherds Friendly, said.
"This offers advisers an opportunity to bridge that gap through conversations, educating what IP covers and addressing concerns younger people have about potentially losing future earnings.
"By engaging younger consumers early, explaining the options available and addressing common misunderstandings, advisers can help them make more informed decisions about protecting their income and building financial resilience."
