• The majority of Millennials (56%) and Gen Z (62%) see a mixture of pension and property as their main retirement asset  

  • Generational difference - Baby Boomers (40%) are most likely to rely on pensions alone 

  • Younger generations face greater difficulty getting onto the housing ladder, with 33% of Millennials and 56% of Gen Z renting or living with loved ones 

  • Standard Life outlines the importance of building a mix of savings and asset to help fund retirement

Millennials and Gen Z see both pensions and property playing a significant role in funding their retirement, according to Standard Life’s Retirement Voice research. This stands in stark contrast to the attitudes of older generations, who tend to rely on just one of these assets.    

The majority of Millennials (56%) and Gen Z believe they’ll use both property and pensions to fund their retirement – roughly double the amount of Gen X and Baby Boomers who say the same (29% and 25% respectively)1. Baby Boomers favoured single source of income in retirement is pensions (40%), while Gen X are the only generation favouring property (38%). 

Main retirement asset  Baby Boomers +  Gen X  Millennials  Gen Z 
Pension  40%  30% 26% 34%
Property  33% 38% 15% 4%
Both pension and property equally  25% 29% 56% 62%

Why pensions still matter 

Standard Life’s research, conducted among 6,000 people, highlights how pensions remain a crucial part of retirement funding, with a quarter (26%) of Millennials and a third (34%) of Gen Z expecting pensions to be their main retirement asset. In contrast, far fewer are expecting to rely just on property as their main retirement income (15% among Millennials and just 4% among Gen Z). This is compared to 33% of Boomers and 38% of Gen X who expect property to mainly fund their retirement. 

It’s perhaps unsurprising that fewer younger people feel property alone can support them in retirement. Given today’s housing and mortgage market, younger generations face significant challenges in getting onto the property ladder – with a third (33%) of Millennials, and more than half (56%) of Gen Z currently either renting or living with loved ones.  

As people move through different life stages their attitudes might shift. Baby Boomers, for example, may have initially seen property as a key asset but later realised the practical difficulties of accessing their home’s value via downsizing or relocating.  

Commenting on the property vs pension question, Mike Ambery, Retirement Savings Director at Standard Life, part of Phoenix Group 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. While pensions offer tax perks and employer contributions, property provides long-term security and, crucially, a roof over your head. 

“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. Gen X is in a unique position, falling between the era of widespread Defined Benefit pensions and the introduction of auto-enrolment in 2012 while often benefitting from a more accessible housing market than Millennials – making property a more viable option for them. The key for everyone is to plan ahead and keep all options open.”  
 

Enquiries  

James Merrick
Standard Life  
07974 063067 
james_merrick@standardlife.com   


1Ipsos Mori conducted research among 6,000 UK adults. Fieldwork was conducted between July and August 2024. Data was weighted post-fieldwork to ensure the data remained nationally representative on key demographics.  

About Standard Life   

Standard Life is a brand that has been trusted to look after peoples’ life savings for 200 years.   

Today it proudly serves millions of customers who come to Standard Life directly, through advisers and through their employers’ pension scheme.  

Standard Life is part of Phoenix Group, one of the largest long-term savings and retirement businesses in the UK.  

We’re proud to be building on 200 years of Standard Life heritage together.  

Our products include a variety of Pensions, Bonds and Retirement options to suit people’s needs, helping our customers to invest and save for their future. We’re proud to offer a leading range of sustainable and responsible investment options.  

We support our customers on their journey to and through retirement with comprehensive, easy-to-understand guidance so they can invest in the right way for their needs and plan a future they feel confident about.  

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