The latest data and analysis from Prudential has shown that dreams of owning a home are outweighing the desire to put money aside for retirement.
According to Prudential's figures, 35% of millennials say they prioritise saving for a deposit on a home instead of their retirement. 19% say buying a house is the main reason they don’t save more into their pension while 10% say student debt stops them saving into a pension. 9% admit that frequently changing jobs affects their ability to make regular pension contributions.
They are willing to make sacrifices for home ownership with 10% living with parents instead of renting to help save more money for a home. The study found men are almost twice as likely to be heading home compared to women.
Despite worries about graduate debt and the squeeze on wages, on average 31% expect to buy their first property by the age of 30, with men (39%) more confident than women (26%) they’ll achieve their ambition. However, the research shows they won’t all have to save hard - an optimistic 20% expect to receive financial aid from the Bank of Mum and Dad.
Industry data shows millennials are right to be hopeful about home ownership – around 365,600 first-time buyers completed mortgages in the year to July borrowing a total of £59.9 billion. The average age of the first-time buyer during the year was 30, borrowing an average £145,000 on a gross household income of £42,000.
But pensions are feeling the strain, Prudential’s research found. Around 21% say they have not started saving for retirement yet while 15% say pension saving does not motivate them and 12% believe pensions are irrelevant to millennials.