Who still rents in their 40’s/50’s- What is your plan?

[Myhouseismyprison]

I live in the South East, for various reasons we have never managed to purchase our own home.

I am now in my late 40’s and DH is 50. We still have children at home who all have their lives here so unable to pick up and move somewhere cheaper just yet.

We have some savings but nowhere near enough to buy here for the house size we would need. We have rented the same house for several years but know this can change quickly and have no idea how we would afford current market rent.

I just wondered what plans people had in place for retirement? What savings accounts would be good?

I panic when I think about this.

I've been so aware of this for the past ten years (I am 50 now).

I was living overseas and coming home was a mess. Tricky with children etc. so I rented. (Cambridgeshire)

Now I'm back home but I am not a home owner. I am going to buy later this year (I feel like I've been saying that for a decade). I have enough to buy a very small house and be mortgage free.

If I wait six months I'll be eligible for a mortgage (needed to build up a savings habit record) so I may get a b small mortgage, like 100k euro to add on to savings.

I feel so worried about this stuff but I think I will be ok. It is definitely something to think about strongly.

I'd be so upset if I was renting and a lot older. Plus I was gutted when renting my lovely house in England and not being able to make changes to it. I have craved having "mine".

Hi

I haven’t read the full thread so apologies if this has been covered. I’m in my 40s, single mum, rented all my adult life. I’m in the process of buying through Skipton building society track record mortgage. It’s a 100% mortgage based on your rental payments. I know there are risks to this way of buying, but for me it’s the only way I can buy. There is lots on money saving expert about them. I also plan to over pay my mortgage which reduces risk of negative equity. Might be worth looking into? I do have to say I’m really impressed with my mortgage advisor, customer service is fab.

I assume we will go into a council property at retirement

I was lucky to be able to buy a flat 20 years ago and then a two bed flat as I had savings and inheritance

I rent my flat out (not close to support when I needed it and ds school) and rent my flat which is more costly

Its like having a savings account, i would never have saved the money that the increase in value of my flat has gone up buy and have used the extra money to pay off more of my mortgage

Its not ideal, would prefer to have been able to buy where we live for ds but it works

I rent a shared room in a flatshare.
I am not tied to being in one place.
I am not responsible for maintenance.
I can move when it suits me.

I would never consider owning a property again.

I have a good pension, as long as i'm able to keep working until at least my 60s. But once my kids are grown up and moved out, I'd like to move away and buy a small flat.

Absolutely Crazy how many people have not planned for retirement funding or living, the state pension is crap and only available from 68. Why do people not take responsibility or want to have a decent retirement? I started in my 20s, the wife and I will have a fantastic pension and will be travelling the world when we draw down on it age 57. Feel sorry for people who leave it too late.

Well, lucky you that you've never had to live hand to mouth, nor been unemployed, had ill health or other problems that has made living in the present challenging enough, let alone being able to plan for the future.

@QuotetheRaven

Absolutely Crazy how many people have not planned for retirement funding or living, the state pension is crap and only available from 68. Why do people not take responsibility or want to have a decent retirement? I started in my 20s, the wife and I will have a fantastic pension and will be travelling the world when we draw down on it age 57. Feel sorry for people who leave it too late.

No need to write such a smug and judgemental comment...

Many people are simply not able to save into a pension because they are too busy trying to make ends meet and don't have anything left after paying the rent and for food/utility bills, especially with the cost of living crisis.

Quite frankly, I can see why some people deliberately don't bother. Housing benefit, pension credit...if you're OK having a very basic standard of life then I can see why not making provision for your old age is tempting.

That you, Craig?? 🙄

@DancingLions

Mortgages were given out like sweeties when you were in your 20s. Before 2007 teenagers in the minimum wage could get a 100% mortgage if they showed 3 months payslips.

Your generation did have a choice.

It's completely different for young people now.

I’m trying to rent at 51 after leaving my alcoholic ex partner and about to sell our home (equity minimal).
I’m constantly getting rejected by landlords despite efforts to prove myself by offering to pay a year’s rent upfront (soon to be outlawed = less leverage for people in my situation). 2 dogs, and no job as in the process of setting up new business, which could take 1-2 years to pay myself a basic salary. Average rental cost for 2 bed house is £1.3K per month, meaning I’d need to be earning £47K+ per year to qualify. There’s no job I could walk into and achieve that salary, meaning utilizing basic savings and building my own business is the only potentially realistic way. The rental market simply is not accommodating for single people unless they have a really good job, so I’m sadly going to have to sleep on a friend’s floor very soon until my luck changes.
Pensions would only last me a year of old age, inheritance will probably be being swallowed by care homes.
Everyone deserves a home - I’ve worked hard all my life and feel so discriminated against right now, the future is scary.
The UK is so fucked.

If your mums pension isn’t enough to cover her rent, she should be able to get housing benefit (on UC) to top up?

Hiya I’m asking this in the nicest possible way as you sound very worried: why do you need a 2 bed house? Is a one bed/studio flat not an option until you get back on your feet?

Also, I’m sure it would be heartbreaking but could your ex keep the dogs for now? You might find it a lot easier to find somewhere to live (not to mention people who are happy to have you on their sofa in the short term) if it’s just you and you don’t need garden access for the pooches, etc.?

Really wishing you the absolute best - it sounds as though you’ve had a really tough time and I hope things turn around for you soon.

Those of you renting who are fifties plus why didn't you buy in the nineties?

I bought my first house(with dp) in 1999 it was a two bedroom semi, it was 28k with no deposit needed. At the time we both worked in pubs on minimum wage we earned around £800 a month each. The mortgage was around 2/300 a month.

I sold it 15 years later for 90k and bought a 4 bed detached for £135 k (got lucky they wanted a quick sale) our house is now worth 250k

I own my house outright but it took years of saving and living very frugally to do so...friends of mine the same age (50)...blew loads of money on holidays and cars and are now stuck in the private rental trap paying 1200 per month.
I would love to have travelled more but i prefer the security my house gives me.

@DancingLions

The problem with the South East is having savings over £16,000 that mean you are not eligible for social housing, but it is not enough for a deposit to actually buy a property.

What do you do? Diminish your savings so you are eligible to have some kind of permanent home or try to carry on saving for a deposit? Meanwhile you are still paying rent. Its so bloody hard.

@gettingthehangofsewing Left home at 17, supported myself through A levels and Uni. Moved around a lot, didn’t find a partner until 30s. Sadly then I made a poor choice and ended up a single Mum supporting us all, financially, emotionally and practically. Started a mortgage in 2007 when prices were sky high. Spent years on interest only and in negative equity paying a massive amount each month. As I worked full time (always have), my childcare bill was almost the same as the mortgage. I was also left with huge debt due to exes issues and me trying to help him financially. When I met my now partner, he did not own and we had to rent a larger property to house all our children. I had to sell up (the house needed huge improvements), made no money and now can’t sleep worrying about what might happen. My pension will be good but not with a huge rental bill each month.

Hindsight is a wonderful thing! I advise my children to find a decent partner young, prioritise financial independence and don’t try and help those beyond help! Tongue in cheek but I wish I’d had the kind of guidance and support I can luckily provide them with.

We are renting in our 40s, for one reason really, which is that we live in London. If I thought we would be staying here I would look at buying whatever we can afford here, but it would be unsuitable and really unpleasant for us. So our plan is to move north, hopefully within the next year. If we can’t, for example if DP isn’t able to wfh two or three days a week, then I think we will have to look at buying somewhere outside London and renting it out.

Very strange reason not to buy - do you realise that you have to have a very sizeable estate for IHT to be payable? And even if it is, your DC would still keep the bulk of your assets?

? Is this only for flats.

I’m sure most people would ideally live in a house but the people on this thread are not really in a position to be picky - none of this is “ideal”.

i doubt you can even get a mortgage in your 50s

You can get a mortgage in your 50s. A decent broker will find one that offers a term beyond retirement, taking pension contributions into account. Then the aim is to overpay to pull the term back within working life as far as possible. That's what I'm doing.