A survey out today claims 86per cent of Generation Y are now thinking about their retirement plans before they are 30.
But another piece of research also published today says 45per cent of people currently renting a property see no prospect of getting onto the housing ladder.
The first study, by the National Skills Academy for Financial Services (NSAFS) in partnership with AXA Investment Managers, says young people are thinking about life after work as young as 27, compared with 41 for the over-55s generation.
But nearly 60 per cent of 18-34-year-olds say they need more financial education to help get them ready for retirement.
The NSAFS says: “Individuals have become overwhelmingly self-reliant for their retirement financial education and three in five people say that they have taught themselves about finance. However, among 18-34 year-olds, only 13 per cent felt it was their responsibility and a third of younger people thought the government should provide financial education.”
The housing study, latest in a series by Post Office Money Mortgages, suggests however that saving into a pension is a long way from the minds of prospective homebuyers, almost half of whom feel locked out of the market at the moment.
“The average age that people expect to be able to get on the property ladder has risen to 36 years old up from 35 last year suggesting that rising house prices and the slow upturn in the economy remain challenges for first-time buyers,” the report says. ” The expectation that they will have to wait until their mid-thirties is shared across most would-be buyers, with those in the East Midlands the most sceptical, fearing they will be 46 before buying a home of their own.”
UK renters believe, on average, that it will take them eight and a half years to save enough for a deposit, with one in ten expecting to wait for more than a decade.
This is at least down from 10 years in 2012 and nine years in 2014, suggesting there is a silver lining and that those who do see themselves buying a property envisage it happening slightly quicker than in previous years.
However one in four prospective home buyers (28 per cent) claim they will never be able to afford a deposit unless their circumstances dramatically change through a better paid job or cash windfall. Not being able to afford mortgage repayments (17 per cent) is also a key concern.
John Willcock, head of mortgages at Post Office Money, said: “It is clear that there is still a long way to go to inspire confidence in the first time buyers’ market, with nine million feeling they won’t ever be able to buy their own property.”
He added: “The size of a deposit is clearly the biggest hurdle that people face, with only 31 per cent expecting to be able to raise the money alone.”
One in four will take advantage of the government’s ‘Help to Buy’ scheme. Others will rely on loved ones with help from their parents (13 per cent) or partners (19 per cent).