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04 October 2018

Millennials put buying property before their pensions

2018

Kirsty Anderson,
Business Development Manager

  • 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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M&G plc, incorporated and registered in England and Wales. Registered office: 10 Fenchurch Avenue, London EC3M 5AG. Registered number 11444019. M&G plc is a holding company, some of whose subsidiaries are authorised and regulated, as applicable, by the Prudential Regulation Authority and the Financial Conduct Authority.

M&G plc is a company incorporated and with its principal place of business in England, and its affiliated companies constitute a leading savings and investments business. M&G plc is the direct parent company of The Prudential Assurance Company Limited. The Prudential Assurance Company Limited is not affiliated in any manner with Prudential Financial, Inc, a company whose principal place of business is in the United States of America or Prudential plc, an international group incorporated in England and Wales.

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M&G plc, incorporated and registered in England and Wales. Registered office: 10 Fenchurch Avenue, London EC3M 5AG. Registered number 11444019. M&G plc is a holding company, some of whose subsidiaries are authorised and regulated, as applicable, by the Prudential Regulation Authority and the Financial Conduct Authority.

M&G plc is a company incorporated and with its principal place of business in England, and its affiliated companies constitute a leading savings and investments business. M&G plc is the direct parent company of The Prudential Assurance Company Limited. The Prudential Assurance Company Limited is not affiliated in any manner with Prudential Financial, Inc, a company whose principal place of business is in the United States of America or Prudential plc, an international group incorporated in England and Wales.

M&G plc は、イングランド及びウェールズで設立・登録。本社登録地は10 Fenchurch Avenue, London EC3M 5AG。登録番号11444019。M&G plcは持ち株会社で、その子会社の一部はPRA(健全性監督機構)及びFCA(金融行為規制機構) に認可され、それらの規制対象となっています。

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M&G plc, incorporated and registered in England and Wales. Registered office: 10 Fenchurch Avenue, London EC3M 5AG. Registered number 11444019. M&G plc is a holding company, some of whose subsidiaries are authorised and regulated, as applicable, by the Prudential Regulation Authority and the Financial Conduct Authority.

M&G plc is a company incorporated and with its principal place of business in England, and its affiliated companies constitute a leading savings and investments business. M&G plc is the direct parent company of The Prudential Assurance Company Limited. The Prudential Assurance Company Limited is not affiliated in any manner with Prudential Financial, Inc, a company whose principal place of business is in the United States of America or Prudential plc, an international group incorporated in England and Wales.