Millennials dig deep to bolster home savings

EYES ON THE PRIZE: New research shows Millennials are thinking about home ownership earlier.

CONSISTENT and conscientious savings plans are propelling more first home buyers into the property market, according to data released by Westpac Life, with more millennial customers digging deep to save for a home.

Over the months of March and April 2018, the data revealed an increase in the number of first home buyer loans issued compared to the same period in 2017 and 2016.

Additionally, the most popular savings goal among those in the 25 to 34 age bracket is home and property.

On average, 70pc of these millennial customers’ total savings is being put away for a future home.

Kathryn Carpenter, Westpac’s Head of Savings, said first home buyers are being diligent with their savings and digging deep to save for a home.

“Millennials are often depicted as a generation more focused on life experiences and living in the ‘now’. However, our research shows that many are in fact taking saving for a home deposit seriously and prioritising it above other goals including travel or lifestyle.”

The data also revealed the younger end of the millennial spectrum (18-24) are already starting to save for a home.

“Our data shows reaching 25 years of age appears to be a key tipping point for customers moving from thinking about saving for a home, to seriously saving for one,” Ms Carpenter said.

Other survey findings included that 72 per cent agreed a tool to track their savings against specific goals would be helpful, while 62 per cent had dipped into savings to cover unexpected costs and life expenses. Of these, 37 per cent did not know if withdrawing money from their savings account would affect the interest they received.

Ms Carpenter said the research showed banks had a role to play in getting millennials engaged with their saving journey.

“Our research shows one in five are using different savings accounts to manage different savings goals,” she said.

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