Saving for a home trumps retirement, being three times more important, according to a report from Nottingham Building Society.

A house deposit was top priority for 24% of under-35s polled compared with just 8% who target pensions.

The study found 24% around one in three (34%) of under-35s are either saving for the first home or to move home compared with one in five (18%) of the population as a whole.

Retirement saving was shown by the research to be the main saving and investing priority for the population as a whole, with 24% selecting this option.

That put it ahead of the 23% who said having cash for unexpected bills was their main priority.

But retirement saving only becomes the major priority when people reach the age of 45.

And worryingly the research found signs of people cutting back on pension contributions to increase saving on other priorities. Around 22% of those questioned said they cut pension saving in the past two years to boost other savings.

Around a third of them cut back to boost saving for a house while 11% needed to reduce contributions to make ends meet, the study found.

Ian Gibbons, senior mortgage broking manager at Nottingham Mortgage Services, said: “The Government is providing a wide range of help for savers trying to raise the money for deposits for houses with Help to Buy ISAs and Lifetime ISAs among the deals on offer.

“The importance that younger savers place on buying their first home or moving home demonstrates that there is strong demand for help with saving with under-35s saying owning a home is three times more important than saving for a pension.

“Savings can clearly only go so far but there is a potential risk in cutting back on pension saving and missing out in later life.”

Around 14% said they cannot afford to save or invest at all.