Millennials appear to be prioritising following the homeownership dream, potentially risking a lower income during retirement in exchange, according to recent research from Prudential.
Over a third (35%) of millennials claim to be prioritising saving for a deposit to purchase a house rather than their retirement. Almost a fifth (19%) say they don’t save more into their pensions due to saving to purchase a house, whilst 10% say student debts prevent them saving into a pension. Almost 1 in 10 admit frequently shifting jobs negatively affects their ability to make consistent pension contributions.
In order to achieve home ownership, millennials are willing to make sacrifices where available, with 10% opting to live with parents as opposed to renting. Interestingly, men are almost twice as likely (20%) to be prepared to live at home compared to women (11%).
Despite concerns including graduate debt and tight wages, almost a third (31%) still expect to purchase their first property by the age of 30, with men being more confident of this than women; although 20% of this number expect to receive financial aid from their parents.
The research also demonstrates that pensions may be feeling the strain as a trade-off, with around 21% admitting to having not even started saving for retirement, 15% claiming that saving for a pension does not motivate them and 12% believing pensions are completely irrelevant to millennials.
An estimated £20bn worth of lost and forgotten pension pots currently wait to be reunited with their owners, with many worth thousands of pounds according to recent research from Pensions Policy Institute (PPI).
Millions of women are set to receive a substantial pension boost following a landmark court ruling which overturns decades of retirement inequality and unfairness.
A record £2.3 billion has been pulled out of pension pots by savers in just three months, raising fears that the 2015 pension reforms could leave many without enough cash for retirement.