Millennials are choosing to save for a property over investing in a Pension Scheme new research by MoneySuperMarket has revealed. One third of millennials (aged 18 to 34) are not enrolled in a pension scheme as their main priority is saving for a home.
1 in 3 not saving into a pension scheme
The survey results reveal some worrying findings:
- On average, millennials aged 18 to 34 have £6,582 in savings
- 39% of 18 to 24 year olds are primarily saving for a house
- A third (33%) of millennials are not enrolled in a pension scheme
- Overall, homes are by far the most important savings point for millennials, with 23% of 18 – 34 year olds saying that they are saving for a house above anything else.
- Millennials underestimate how much they need to retire by £213,400 on average
Is it better to think of buying a home or saving for your golden years?
New research by leading price comparison website, MoneySuperMarket, reveals that, amongst younger age groups, saving for a house is a far higher priority than saving for retirement.
Homes are by far the most important savings point for millennials, with 23% of 18 – 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 18-24 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.
Pension Calculator from The Money Advice Service
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.
How much you need to retire
Retirees spend approximately £2200 per month per household. Within this figure includes household bills, hobbies, european holidays and some extra luxuries.
Retires spend approximately £4500 per year on travel and holidays.
*research based on 6,000 retired and semi-retired Which members, see below for more facts and figures.
State pension is £251.90 per week per couple (£164.35 for individuals) if you quality before 6 April 2016
Find out more: https://www.gov.uk/new-state-pension/how-its-calculated