Pensions vs. Property: What are you saving for?
Rising prices force first time buyers to choose deposits over pensions
We carried out a survey of our website users in December 2024, with data revealing that 88% of potential buyers are prioritising saving for a property deposit over saving for a pension – risking financial insecurity in retirement.
Completed by over 2,200 respondents on sharetobuy.com, the survey highlights the challenges faced by first time buyers in an increasingly unaffordable housing market.
This focus on short-term homeownership goals over long-term retirement savings paints a concerning picture for hopeful homebuyers. While lower pension prioritisation is typically associated with the younger generations, Share to Buy’s survey data reveals that this is an issue affecting buyers of all ages. The largest group of survey respondents were aged 36–45 (27%), and the second largest between 46–54 (23%), meaning that many of those currently not saving for their pension are within a decade or two of retirement age.
Additionally, 77% of respondents have not received financial support from family members to help with a deposit, underscoring the challenges faced by those without generational wealth. For single buyers, the barriers are even greater: while 57% of respondents are looking to purchase alone, 65% believe that buying as a single person is unachievable in the current market. 52% of all respondents have savings of £10,000 or less, significantly below the average deposit requirement for homes on the open market, which currently sits at £53,414.
Jade Turnstill, Head of Brand and Content at Share to Buy, comments: “It’s worrying that potential first time buyers feel they have no choice but to prioritise saving for a deposit at the expense of their future financial security. With property prices and interest rates soaring, many buyers face an uphill battle just to save for a deposit, let alone consider their long-term financial well-being.
“Share to Buy is the home of Shared Ownership, Rent to Buy, Deposit Unlock and a number of other schemes designed to help aspiring homeowners find their space. Our recent survey highlights the need for more accessible, affordable housing options which can help buyers step onto the property ladder with initial lower costs, while also allowing them to maintain contributions to long-term financial goals like pensions.”
Share to Buy lists thousands of affordable properties across the country, including those available through Shared Ownership, Rent to Buy, London Living Rent and Discount Market Sale. Learn more about the different buying and rental schemes available today.
