Homeownership or retirement? Millennial investors feel forced to choose

Homeownership or retirement? Millennial investors feel forced to choose

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Move over avocado toast, there's a new reason Millennial investors feel they can't buy a home - and it's one that's much more concerning.

According to a new survey from Nationwide, a staggering 58% of Millennials feel forced to choose between homeownership and retirement security, with 46% believing mortgage or home equity loans pose the biggest threat to achieving a secure retirement.

While mortgage rates did reach a peak earlier in the year, they have dropped significantly. This dip is largely due to Federal Reserve actions, with the average 30-year fixed mortgage rate recently reportedat a three-year low of 6.13%. However, according to Nationwide's Office of Economics, it's expected that poor housing affordability will continue to keep many potential buyers on the sidelines into 2026.

"Millennials are navigating their prime earning years amid a financial landscape marked by volatile markets, high interest rates and shifting economic norms. These challenges are not only impacting their ability to build long-term wealth, but affecting key life milestones like homeownership and retirement planning," said Juan José Pérez, president of Nationwide Corporate Solutions. "In times like these, partnering with a trusted financial advisor is going to be critical, helping you create personalized, goal-based strategies to manage risk, build your savings and prepare for major life events with confidence."

The good news? The complexity of today's financial landscape has driven Millennials to seek professional guidance at unprecedented rates. Of the 45% of Millennial investors who work with an advisor or financial professional, three-fourths (75%) began doing so in the last year, according to Nationwide's survey.

While immediate challenges like housing costs are important to address, advisors are helping their Millennial clients take a longer view to prepare for retirement too, said Perez. They are talking to clients about Social Security and healthcare costs, with 35% saying the uncertain future of government support programs pose the most immediate challenge to clients' retirement portfolios and 82% saying healthcare costs are a significant factor in Millennial clients' ability to plan for retirement. That's a stark contrast from the 6% of Millennial investors who consider a lack of Social Security funds a challenge to preparing for retirement and the 13% who cited healthcare costs as an obstacle, according to Nationwide's survey.

"Our survey data shows Millennials benefit significantly from advisors' long-term perspective on retirement planning risks," said Perez. "Partnering with a good financial professional can help you save for shorter-term goals - like buying a house - while layering that with preparing for longer-term challenges. Talk with your advisor about solutions that can provide guaranteed income in retirement, like annuities, to help you build confidence in your savings strategies so you can go after both homeownership and a secure retirement."

Need to connectwith a financial professional? Nationwide has a team of specialists ready to listen and learn about your unique insurance and financial needs.

NFM-25138AO

10/2025