Does it matter that young people in Britain aren't religious?

A recent poll of young people found that 41 per cent thought that religion was the cause of more harm than good in the world.

Young people in Britain aren't religious. Actually, increasing numbers of people young and old aren't religious, as the census data shows (the dramatic decline in the Christian headcount had much to do with people who had already been adults ten years previously providing a different answer this time) but today's 18-24 years olds are probably the most irreligious generation yet. 

Take, for example, the results of a YouGov poll of "Generation Y" released yesterday. Only 25 per cent say that they believe in God, as opposed 38 per cent who definitely don't. It may not be surprising that fewer than ten per cent attend religious worship on anything like a regular basis (at least once a month) but one finding stands out starkly. 41 per cent thought that religion was the cause of more harm than good in the world. Only 14 per cent (a considerably smaller figure than that for belief in God) thought that religion was, on balance, a good thing. Richard Dawkins and the other "New Atheists" would seem to have got their message across.

It's not that today's young adults are lacking in blind faith: no fewer than 70 per cent expect to own their own homes one day.  It's just that they're not looking to religion to give meaning to their lives or to shore up their values, which remain in many ways quite traditional. The findings look especially bleak for Christianity. Affiliation and belief are holding up well among young Britons from Muslim and other minority religious backgrounds. On the other hand, only 13 per cent feel an affiliation to the Church of England, which must be worrying for an institution that still feels a duty to provide a moral lead to the nation and wants to cling on to its ex officio seats in the House of Lords.

So what of those who buck the trend? Nick Spencer of the Christian think tank Theos has expressed some concern at the news, fearing that the current default position of disinterest might slip into hostility:  "That could mean that religious believers, of all stripes, find it hard to be heard dispassionately in public debate but it might herald worse, such as children mocked for their religious beliefs, the curtailment of civil liberties in the name of secular equality, or even physical attacks, such as several mosques endured in the wake of Woolwich." 

Even without outright hostility young Christians, in particular, find themselves in a minority.  They can't count on other people understanding their faith, let alone sharing it.

Some in depth research (pdf) carried out in Glasgow around five years ago as part of the "Youth and Religion" project shed some light on what it was like to be young and Christian in a disbelieving society. It found that younger believers tended to have a more self-conscious, active in some ways more defensive faith than that of their parents' generation. They were more likely to see Christianity as part of a personal identity - indeed, as something that distinguished themselves from their peers. Most believed that it was difficult to be a Christian today, even that Christians were discriminated against. 

But this if anything made them more determined. Far from a more secular society producing a watered-down faith in those who still believe, they took strength from the counter-cultural nature of religion today - a contrast to what had been found in surveys in the United States, where Christianity remains more mainstream. It's no surprise, then, to find practising Christians over-represented in campaign groups, whether around environmental or social issues or on more traditionally "religious" topics such as abortion.

The ways in which religion is being practised seem to be adapting to the era of social networks. The Glasgow research discovered that "Generation Y appears to be constructing religious experience and practices in different ways than previous generations...  Some who consider themselves Christian may not attend a service on Sunday or be a member of a church at all. Nearly all young people weave together a range of different ‘encounters’ and ‘relationships’ – youth groups, Bible study, music events, work, worship at skate parks, personal study or reflection – to create unique religious packages."

An example of what this might mean in practice is the inter-denominational "Fresh Expressions" initiative, which sets out to create and support "new ways of being church" - for example, Christian groups meeting at car boot sales or forming around geo-cacheing.  An Anglican church in Cambridge pioneered a "Goth Eucharist" which was more-or-less exactly what you'd expect it to be: dark candles and darker music, but with a Christian twist.

The Fresh Expressions initiative featured in a bizarre-sounding report last week that the Church of England was setting up a "pagan church" in the hope of attracting druids and hippies into its ranks. Timed neatly to coincide with the Summer Solstice, mentioned the Church Mission Society's Andrea Campenale, who had set up a "Christian tent" at a pagan festival in Eastbourne.  Another of those quoted, the Reverend Steve Hollingshurst (who is associated with Fresh Expressions), denied that he was hoping to convert pagans; rather, he explained, he wanted to explore why new forms of spirituality seemed to "address the lives of many though not all people today far more effectively than the church". 

The churches' loss of numbers, confirmed by the latest poll, would suggest that Hollingshurst is right about the ineffectiveness of traditional Christianity, especially at appealing to the young. Yet Evangelical congregations continue to grow and young believers, though relatively few in number, make up for it in terms of dedication and visibility. And they are helped, surely, by one of the great paradoxes of our times: that the less widely practised religion is, the more newsworthy it seems to be.

A Lent service. Photograph: Getty Images
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Stability is essential to solve the pension problem

The new chancellor must ensure we have a period of stability for pension policymaking in order for everyone to acclimatise to a new era of personal responsibility in retirement, says 

There was a time when retirement seemed to take care of itself. It was normal to work, retire and then receive the state pension plus a company final salary pension, often a fairly generous figure, which also paid out to a spouse or partner on death.

That normality simply doesn’t exist for most people in 2016. There is much less certainty on what retirement looks like. The genesis of these experiences also starts much earlier. As final salary schemes fall out of favour, the UK is reaching a tipping point where savings in ‘defined contribution’ pension schemes become the most prevalent form of traditional retirement saving.

Saving for a ‘pension’ can mean a multitude of different things and the way your savings are organised can make a big difference to whether or not you are able to do what you planned in your later life – and also how your money is treated once you die.

George Osborne established a place for himself in the canon of personal savings policy through the introduction of ‘freedom and choice’ in pensions in 2015. This changed the rules dramatically, and gave pension income a level of public interest it had never seen before. Effectively the policymakers changed the rules, left the ring and took the ropes with them as we entered a new era of personal responsibility in retirement.

But what difference has that made? Have people changed their plans as a result, and what does 'normal' for retirement income look like now?

Old Mutual Wealth has just released. with YouGov, its third detailed survey of how people in the UK are planning their income needs in retirement. What is becoming clear is that 'normal' looks nothing like it did before. People have adjusted and are operating according to a new normal.

In the new normal, people are reliant on multiple sources of income in retirement, including actively using their home, as more people anticipate downsizing to provide some income. 24 per cent of future retirees have said they would consider releasing value from their home in one way or another.

In the new normal, working beyond your state pension age is no longer seen as drudgery. With increasing longevity, the appeal of keeping busy with work has grown. Almost one-third of future retirees are expecting work to provide some of their income in retirement, with just under half suggesting one of the reasons for doing so would be to maintain social interaction.

The new normal means less binary decision-making. Each choice an individual makes along the way becomes critical, and the answers themselves are less obvious. How do you best invest your savings? Where is the best place for a rainy day fund? How do you want to take income in the future and what happens to your assets when you die?

 An abundance of choices to provide answers to the above questions is good, but too much choice can paralyse decision-making. The new normal requires a plan earlier in life.

All the while, policymakers have continued to give people plenty of things to think about. In the past 12 months alone, the previous chancellor deliberated over whether – and how – to cut pension tax relief for higher earners. The ‘pensions-ISA’ system was mooted as the culmination of a project to hand savers complete control over their retirement savings, while also providing a welcome boost to Treasury coffers in the short term.

During her time as pensions minister, Baroness Altmann voiced her support for the current system of taxing pension income, rather than contributions, indicating a split between the DWP and HM Treasury on the matter. Baroness Altmann’s replacement at the DWP is Richard Harrington. It remains to be seen how much influence he will have and on what side of the camp he sits regarding taxing pensions.

Meanwhile, Philip Hammond has entered the Treasury while our new Prime Minister calls for greater unity. Following a tumultuous time for pensions, a change in tone towards greater unity and cross-department collaboration would be very welcome.

In order for everyone to acclimatise properly to the new normal, the new chancellor should commit to a return to a longer-term, strategic approach to pensions policymaking, enabling all parties, from regulators and providers to customers, to make decisions with confidence that the landscape will not continue to shift as fundamentally as it has in recent times.

Steven Levin is CEO of investment platforms at Old Mutual Wealth.

To view all of Old Mutual Wealth’s retirement reports, visit: products-and-investments/ pensions/pensions2015/