Buying a home has become such a major priority for many young adults they are forfeiting their pension to get on the property ladder.
Prudential polled over 1,100 adults and discovered over a third of those in the 18 to 35 age group were putting their money towards a deposit instead of saving it for their retirement.
But forgoing a chunk of their pension was not the only sacrifice those desperate to become homeowners were willing to make. One in ten of those questioned chose to live with their parents instead of renting in their bid to save more money for a home.
Men, it emerged, were twice as likely as women to return home to help save money for a deposit.
Prudential’s study also reinforced evidence growing numbers of millennials are relying on the Bank of Mum and Dad to support their first home purchase and mortgage application. In fact, 20% expected to receive financial help from their parents.
But while a third of those questioned were optimistic and expected to be able to buy their first property by the age of 30, there were many who were not so confident.
The study discovered men were more positive they would get on the property ladder before reaching 30, with 39% compared to 26% of women saying they would achieve this ambition.
But one in seven 35 to 54-year-olds thought homeownership was such an impossibility they had actually given up 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 rent.
“However, it is crucial to start saving for your pension as early on as possible, putting away as much as you can each time.”
