The ability of millennials to secure a similar lifestyle to the currently retiring baby boomer generation will be highly dependent on whether they are able to secure their place on the property ladder as soon as possible, enabling them to pay their mortgage off by the time they retire, a task that is becoming increasingly difficult.
Despite the many pessimistic articles and reports regarding the future lifestyles of millennials, a report by the Resolution Foundation found that overall the lifestyles of millennials and baby boomers will be similar at retirement having assumed that millennials will not have to rent, having paid off their home.
Auto-enrolment, the government's mandatory pension contribution initiative, has negated the removal of final salary schemes and the future reduction of state pensions that could have seriously impacted the future prosperity of those affected.
More than 10 million workers are now saving in to auto enrolment schemes in the UK (Katie Morley, Telegraph Consumer Affairs Editor, November 2017).
Rising property prices however, could mean that home ownership is increasingly unattainable for young people.
According to the Local Government Association, the proportion of homeowners aged 25 has halved over the past 20 years, making a strategy for building a deposit, in order to make that first step more important than ever.
By starting early, you can put a strategy in place that could enable you to reach your goals in the future. If you feel the need to take control of your financial future, contact Westminster Wealth Management, we can help.
The value of investments and income from them may go down as well as up and you may not get back the original amount invested.
Information is based on our current understanding of taxation legislation and regulations which is subject to change.
Your home may be repossessed if you do not keep up repayments onyour mortgage.
Our charges are usually between £395 and £995 depending on the type and amount of borrowing required and individual circumstances.
Millennials will not be worse off than the Baby Boomers in retirement...But only if they get on the housing ladder