Many people aged between 25-34 are stretched to their absolute limit to buy a house, according to a new survey by the International Longevity Centre.
The study found that many of these are relying on rising property prices to pay for their retirement, with the percentage of those paying into pension schemes halved over the last ten years. In tandem, debts have almost doubled.
Sky-high property prices and the reality of massive mortgage repayments mean that many young consumers are unable to pay into a pension scheme, if it is not provided by the company that they work for. Little cash is available for day-to-day living, and extra costs such as pensions .
The senior researcher at the think-tank, James Lloyd, reportedly commented: "Despite the property wealth of older households more than doubling in value during the decade after 1995, these rising property assets are not actually resulting in an improved standard of living for older people in retirement . Now a new generation are seeing their retirement saving skewed towards property assets, with bigger mortgages and falling contributions to private personal pensions. But the young risk being let down badly if they think that buying a property is the best way to save for retirement . They may find themselves in the same position as today's older cohorts, with large volumes of illiquid wealth that are failing to contribute to any extra income in retirement."
Pension crisis on the horizon for the young
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Pension crisis on the horizon for the young
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