People under 35 prioritise mortgage over retirement

September 26, 2016 by Brendan

Property Market

Three quarters of those aged 35 and below would rather save for a mortgage than for their retirement, according to a study conducted by Consumer Intelligence.

The Nottingham Building Society commissioned the research, surveying 1,065 adults. The results indicate that 24% of people aged under 35 prioritise saving for a mortgage, in comparison to just 8% who are making their retirement a number one priority. The survey highlighted that 34% of people aged below 35 were saving to buy a home, almost double the number across all the age groups.

Of those people who are paying less towards their pension contributions, a third are saving to buy a house. Around 22% of recipients said that they had reduced their pension payments during the last two years, so they could boost their savings. The mortgage broker manager at Nottingham Building Society, Ian Gibbons, said that this may indicate that the demand for the Lifetime ISA would be high, a savings initiative for first-time buyers that could also be used towards their pension pot.

Gibbons warned that saving for a deposit and reducing pension contributions could mean that they miss out later on life when they want to retire. He advised that those buying a home should look at all options, as there were a number of products available for those with a small deposit. Mortgage advisers study for their CeMAP qualification so that they have sound knowledge of all suitable mortgage products. The Lifetime ISA will be released in April next year.