Millennials Prioritise Saving for a House Over Investing in a Pension Scheme
New research by leading price comparison website, MoneySuperMarket, reveals that, amongst younger age groups, saving for a house is a far higher priority for millennials than saving for retirement.
Homes are by far the most important savings point for millennials, with 23% of 18- to 34-year-olds saying that they are saving for a house above anything else. Those saving for houses are more prevalent among the younger side of the age group – as the figure saving money towards their home rises to 39% among 18- to 24-year-olds.
Only 4%, however, say their primary savings concern is retirement, and 33% of millennials don’t have a pension pot in place. Even those who do aren’t keeping an eye on it, as a further 53% don’t know how much is in their pot.
Many people in the UK haven’t even started thinking about saving for when they stop working. Most have no idea how much they need to save to live a comfortable life in the future, underestimating the cost of retirement by £169,000 on average. However, whilst home ownership can seem like a pipe dream for many young people in the UK, the fact that a house was by far the most prioritised aspect to save for amongst the younger age groups shows that many are still hopeful they can get their foot on the housing ladder.
Using consumer research, MoneySuperMarket has built an interactive tool that people can use to see how prepared they are compared to their peers, with results tailored by the user’s age and gender.
Kindly shared by MoneySuperMarket