Millennials prioritising property over pensions

Nearly a fifth (19%) say buying a house is the main reason they don’t save more into their pension while 10% blame student debt. 9% admit that frequently changing jobs affects their ability to make regular pension contributions.

Despite worries about graduate debt and the squeeze on wages, 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.

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.

However not all millennials are focused on home ownership.17% of under-35s say buying a house is a not a realistic option currently while 11% say saving for a house deposit is not a financial priority.

Additionally, one in seven 35-54-year olds have given up on the hope of ever owning a home.

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."