Homeownership or financial security with a pension? Young buyers are being forced to choose – and it’s not fair

17 February 2025, 14:56

In this day and age, stepping onto the property ladder now comes at a steep cost – one that extends far beyond a deposit.

A new survey that we carried out at Share to Buy has uncovered a troubling trend: 88% of prospective homebuyers are prioritising saving for a home deposit over contributing to their pension.

In an era where financial security is more precarious than ever, this trade-off could have devastating long-term consequences.

Thanks to rising property prices and ever-fluctuating interest rates, younger generations are being forced to choose between securing a roof over their heads or planning for their later years.

But it’s not just young buyers who are struggling - the largest group of our 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.

The implications of this are potentially catastrophic – over the next 20 years, we could be seeing a surge of senior citizens who may struggle to retire or financially support themselves in their old age.

For single buyers, the outlook is even bleaker – while 57% of our survey respondents are looking to buy alone, 65% believe it’s totally unachievable in today’s market.

It’s clear that something has to change. The Government and housing industry must work together to provide more accessible and affordable housing solutions that will allow people to get onto the ladder, while still saving for their long-term future.

The end of the Help to Buy equity loan in 2023 compounded these challenges further. However, schemes such as Shared Ownership, Rent to Buy, and Deposit Unlock can help ease the burden by allowing buyers to secure a home with lower upfront costs.

Crucially, these schemes also give people the flexibility to continue saving for their future, rather than being forced to gamble it all on homeownership.

While it’s been encouraging to see the Government placing an emphasis on housebuilding, it has made few announcements that will directly support homeownership – with schemes like Shared Ownership often being overlooked.

The current system is pushing buyers into making impossible choices, and without intervention, we risk seeing a generation trapped in financial insecurity.

It’s time to rethink the way we approach homeownership – because a home should provide security, not take it away.

Jade Turnstill is Head of Brand and Content at Share to Buy

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