Nearly a fifth say buying a house is the main reason for not increasing retirement saving, whilst 10% say student debt stops them saving into a pension, according to the latest analysis from Prudential.
One in five under-35s expect the Bank of Mum and Dad to help with buying a house, whilst one in 10 are willing to make sacrifices for home ownership, such as living with parents, instead of renting, to save more money.
The report showed that on average nearly a third expect to buy their first property by the age of 30, with men (39%) more confident than women (26%).
Around 21% say they have not started saving for retirement yet, while 15% say pension saving does not motivate them and 12% believe pensions are irrelevant to younger people.
The research also showed one in seven 35-54-year olds have given up on the 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 rents.
“However, it is crucial to start saving for your pension as early on as possible, putting away as much as you can each time.”
