There was more bad news for the pensions industry after a new study found that young people feel saving for property is more important than a pension.
The research, conducted by independent market research firm Consumer Intelligence, found that under-35s are three times as likely to prioritise saving for a residential property than for retirement.
The report, which was commissioned by Nottingham Building Society, revealed that 24% of under-35s rate saving for a home as their top priority compared with just 8% who prioritise retirement saving.
Retirement saving has long been the main saving and investing priority for the population as a whole, but this latest study shows that attitudes are changing and that getting a foot on the housing ladder is now the main priority for many people, especially those under the age of 35.
The research shows that 34% of under-35s are either saving for the first home or to move home compared with 18% of the population as a whole, which partly reflects the fact that return on investment in residential property continues to outperform all other mainstream investments.
Only last month, Andy Haldane, the Bank of England’s chief economist, said that investing in property is a better investment for retirement than paying in to a pension.
“The importance that younger savers place on buying their first home or moving home demonstrates that there is strong demand for help with saving with under-35s saying owning a home is three times more important than saving for a pension,” said Ian Gibbons, senior mortgage broking manager at Nottingham Mortgage Services.