young people don't see property as key to retirement

Wednesday 20 August 2025 5:12 am
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Tuesday 19 August 2025 4:22 pm

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Younger generations are taking a “more flexible approach” towards saving for retirement, amid concerns that traditional savings routes won’t be enough to rely on.

The majority of younger generations see both pensions and property playing “key parts in their financial future”, according to the latest Standard Life retirement voice research, surveying 6,000 people.

Over 50 per cent of millennials and 62 per cent of Gen Z plan on using both assets, a stark contrast to older generations, with only roughly half the amount of Gen X and baby boomers also intending to rely on both.

Mike Ambery, retirement savings director at Standard Life, said: “Younger generations seem to be taking a more flexible approach to retirement, seeing both pensions and property as key parts of their financial future.”

“It’s smart to build a well-rounded plan, with as many bases covered as possible.”

Older generations reaping the benefits

Unlike young people, the majority of the older generations opted for a singular asset, fuelled by expectations of substantial returns throughout their working life.

Baby boomers are most likely to rely on their pensions, with 40 per cent depending solely on them, influenced by their “gold-plated” defined benefit pensions guaranteeing them an inflation-linked income throughout retirement.

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Gen X, on the other hand, entered the workforce too late to rely on defined benefit schemes and too early for the auto-enrolment introduction in 2012, but managed to take advantage of an accessible housing market in the 1990s, which offered more affordable prices than today and a subsequent property boom.

Pensions still highly favoured

While the majority of young people see both assets funding their retirement, pensions remain “a crucial part” in paying for life after work, through a combination of tax perks and employer contributions.

A quarter of millennials and a third of Gen Z expect pensions to be their main retirement asset, with far fewer believing property will be enough to get them through the later years.

Just 15 per cent of millennials and 4 per cent of Gen Z plan to support themselves solely off property, despite the security it has traditionally offered, as more young people struggle to get a foot on the housing ladder.

According to Standard Life research, over 50 per cent of Gen Z are currently renting or living with loved ones, instead of pursuing home ownership.

Ambery said: “Those who are unable to or who choose not to get on the property ladder through their working lives and rent in retirement will need additional savings to cover housing costs alongside day-to-day expenses.”

“The key for everyone is to plan ahead and keep all options open.”

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