Millennials put buying property before their pensions
4th October 2018
- Over a third (35 per cent) of under-35s prioritise saving for a house deposit over their pension
- Nearly a fifth (19 per cent) say saving for a home is the main reason for not increasing retirement saving
- But one in five under-35s expect the Bank of Mum and Dad to help with buying a house
Millennials are chasing the home ownership dream at the potential cost of a lower income in retirement, new research from Prudential shows.
Over a third (35 per cent) of millennials say they prioritise saving for a deposit on a home instead of their retirement. Nearly a fifth (19 per cent) say buying a house is the main reason they don’t save more into their pension while 10 per cent say student debt stops them saving into a pension. One in 11 (nine per cent) admits that frequently changing jobs affects their ability to make regular pension contributions.
They are willing to make sacrifices for home ownership with one in ten (10 per cent) living with parents instead of renting to help save more money for a home. The study found men are almost twice as likely (20 per cent) to be heading home compared to women (11 per cent).
Despite worries about graduate debt and the squeeze on wages, on average nearly a third (31 per cent) expect to buy their first property by the age of 30 with men (39 per cent) more confident than women (26 per cent) they’ll achieve their ambition.
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