Faced with stark decisions between home ownership and saving for retirement, 35% of millennials are prioritising saving for the former over the latter, a study has revealed.
Some 19% cited buying a property as the main reason for not putting more into their pension, according to Prudential. Student debt was also said to be another barrier to higher contributions towards retired life (10%).
The average cost of a home in the UK is £214,922 (€214,513), Nationwide reported this month. That figure more than doubles in London, where homes cost £468,544 on average.
Millennials are willing to make significant sacrifices for home ownership alone, with 10% living with their parents to save up funds for a home. However, with 21% of those in the group not saving for retirement, there is cause for concern over the long-term costs.
One in four (24%) of millennials in the UK are not saving into pensions, a survey released by Prudential in August revealed.
“It is crucial to start saving for your pension as early on as possible, putting away as much as you can each time,” said Kirsty Anderson, a retirement income expert at Prudential.
“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,” she added. “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.”
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