Saving for a home is top priority for under 35s

Under-35s are three times as likely to prioritise saving for a house over saving for retirement, according to recent research results.

The study showed 24 per cent of people in that age bracket cite saving for a home as their top priority, compared to just eight per cent who favour investing in a pension.

Other key highlights revealed that 34 per cent of those under 35 years of age are saving for their first home or to move home, in contrast with just one in five (18 per cent) of the population as a whole.

And 23 per cent of those surveyed said having cash stashed away for unexpected bills was a main concern – but it was found to only become a major priority when people reach the age of 45.

But they are the lucky ones, as around 14 per cent admitted they cannot afford to save or invest at all.

The study was carried out online, on behalf of Nottingham Building Society in the first week of June, and involved a nationally representative sample of 1,065 adults.

Ian Gibbons, senior mortgage broking manager at Nottingham Mortgage Services, said: “The government is providing a wide range of help for savers trying to raise money for deposits for houses, with Help to Buy ISAs and Lifetime ISAs among the deals on offer.

“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.

“Savings can clearly only go so far but there is a potential risk in cutting back on pension saving and missing out in later life. Potential homebuyers should explore their options for borrowing, as there are mortgages available for those with small deposits and a broker who can search the market will help.”

More information about Nottingham Mortgage Services, call 0344 481 0013, visit a branch or go to www.thenottingham.com/mortgages.