Saving towards a new home is 3 times more important than saving for a pension for under-35s, according to research by Nottingham Mortgage Services.
25% of the over 1000 adults surveyed said that their top priority is raising funds towards buying their first property while just 8% said investing into a pension was their top priority.
34% said they’re either saving towards their first home or to move compared to 18% of the population as a whole.
Further findings:
- 24% of the wider population said retirement saving was their main priority
- 23% of the wider population said having cash to cover bills was their priority
- 22% said they cut pension savings in the past 2 years to boost their savings
- 11% reduced contributions to make ends meet.
Nigel Holland from Holland & Co Chartered Accountants said:
“I can sympathise with the dilemmas faced by the hardworking young adults, who are desperate to get on the property ladder for the first time.
With the average wage increase not proportionate to the steadily rising costs of living, it is a sad consequence that people have to forgo contributions towards their pension funds.
It is important that people are mindful towards securing financial stability in later life. First time buyers should explore all options of help available, such as Government backed schemes like help to buy, or look for mortgages with small deposits.
The government proposed Lifetime ISAs, which are available from 2017, will hopefully help people make better decisions about future savings.
Talk to us today about financial planning for you and your family.”