Over a third (35%) of millennials prioritise saving for a deposit on a home over their retirement, Prudential has found.
Nearly a fifth (19%) said buying a house is the main reason they don’t save more into their pension while 10% blamed student debt from stopping them saving into a pension. One in 11 (9%) admitted that frequently changing jobs affects their ability to make regular pension contributions.
Kirsty Anderson, retirement income expert at Prudential, said: “Juggling buying a house with saving for retirement is challenging and it is inevitable that something gets dropped which unfortunately appears to be retirement saving.
“Retirement can seem daunting for millennials and is of course a long way off when you are contending with student debts and high rents.
“However, it is crucial to start saving for your pension as early on as possible, putting away as much as you can each time.
“It is easier if you start doing this as soon as you start working so you get used to the money going straight into your pension pot. Many will at least be saving through the workplace, which is a good start, and contributions should be regularly reviewed to ensure a significant fund can be built up.”
They are willing to make sacrifices for home ownership with one in 10 (10%) living with parents instead of renting to help save more money for a home. The study found men are almost twice as likely (20%) to be heading home compared to women (11%).
Despite worries about graduate debt and the squeeze on wages, on average nearly a third (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 an optimistic 20% expected to receive financial aid from the Bank of Mum and Dad.
Around 21% said they have not started saving for retirement yet while 15% said pension saving does not motivate them and 12% believed pensions are irrelevant to millennials.
Not all millennials are focused on home ownership. About 17% of under-35s said buying a house is a not a realistic option currently while 11% reported saving for a house deposit is not a financial priority.
And it is not just millennials; the research showed that one in seven 35-54-year olds have given up on the hope of ever owning a home.