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?

My dad was renting after financial issues meaning he had to sell his house. His landlord was shite and health declining which helped him get sheltered accom at 72. While it’s not cheap as some council living. It’s secure and so much better.

His situation made me realise i want the security of owning my home for retirement/older years. i could not cope with the uncertainty of a landlord selling/raising rents etc. ( i rented til 37)

We will have savings to ensure repairs as we age. We look after our house now and plan to do anything that needs it pre retirement. It’s about planning in my case

How can you not qualify for the state pension ? You know you can get credit for years being the main carer for DCs ? You still have 17 years to contribute.

Put the 16,000 into a pension.

perhaps i am too old for this discussion
60 this year
i rent from social housing so hope when necessary to move to a smaller social housing property
buying is out of the question

Have you not been keeping abreast of the news . There is no council housing . There is a huge number of people wanting housing that doesn't exist and it remains to be seen if sufficient numbers will be built .
Don't wait until retirement to see what happens you need to be proactive now .

I’m not 40 yet but very close and isn’t looking like I’ll be anywhere near buying before my 40s and by then I’ll have to review if it’s even worth it as I’m in SH - my main issue is that I was placed in an horrendous building with lots of issues and I would prefer to move somewhere quieter/nicer overall.

If all else fails I’ll just stay in SH.

That sounds brilliant - well done for being pro-active and having the security of your own home.

There's definitely a big divide in pensioners currently - those who rent and get everything paid for by the state - and those who own their houses, paying their own way and contributing towards the former by way of paying income tax.

Omg the amount of people who are in council housing who are renting and unaware. Please note that you can purchase the home you live in from the local authority. You do not require a deposit the mortgage is a right to buy one. The price is even discounted depending on the number of years occupied. Income such as PIP, child benefit, tax credits can be used to afford the repayments. It's worth speaking with an independent financial adviser for further help with this.

and you agree with buying council houses?
when there are no more being built?

I think you would be in a position where shared ownership would work quite well.

I am 60 and rent a HA property. My ex financially did a number on me and I didn’t recover from until just before lockdown. Although I could save for a deposit, realistically, 6 and a bit years is not enough time to pay the mortgage.
I am secure here, the rent is not extortionate and anything structural that needs fixing, gets fixed and I don’t pay for it. I am happy with the arrangement now.

I’m afraid I have little to add to this thread regarding mortgages / rental.

I personally would be very unsure of banking on support from the Government. My view is that the benefits system is going to have to change as it is unsustainable.

I’m not an expert but it is a ‘vote winner’ for a number of political parties. I’d therefore look at alternative options, if possible. I think shared ownership is expensive but it does provide security and the 100 per cent mortgage from Skipton also sounds like an option that should be explored.

Private Landlords are selling up at the moment because of the rental reforms and requirements put on them, so I think the housing situation could get worse, and/or you will just see more pension funds etc acting as landlords - the rent for these properties are very expensive.

I think as a matter of urgency you need to save for a deposit for somewhere that you will be able to live in and pay off the mortgage before retirement. Then everything spare after that should go into a pension and stockpile until retirement. See a financial advisor? I think definitely make a concrete plan- it sounds a bit vague and as you know you don’t have a huge amount of time so a couple of years now makes a big difference even. x

@WhatTheFuckIsThisNow i can’t see how you won’t qualify for any state pension - if you are a carer you will qualify for credited years. Have a look- I suspect you do qualify for some years! Alternatively you could make voluntary NI payments - it’s very cheap. Seek some experts advice, don’t just assume you can’t participate in state pension! I think you’ll find you are eligible..

Negative equity is only an issue if you want to move. People get very worried by the term but if you’re planning on living there indefinitely although it could be the case in the early years , long term it’s not a problem as you start to pay off the capital .

How much savings? Is it enough for a 20% deposit somewhere cheap? If so I'd buy a buy-to-let property up north now. Rent it out to pay down your mortgage for a few years, then when DC leave and the BTL tenancy ends you convert to a regular mortgage and move in.

My plan is to stay here.

I'm lucky it is HA and designed and built for someone with a disability.

Obviously I am also unlucky that I'm disabled and unable to work.

I don't have a right to buy, there is an exception for accessible properties and I understand that, accessible accommodation is as rare as hens' teeth.

It also means that I don't pay for most repairs.

Late 50s, lone parent with adult DC at home and being crucified by rent. Worked non stop entire life. Masters degree. Financially shafted by ex. Wouldn’t afford to buy even a 1 bed around here. Will never be able to retire. Totally stuffed. Will have to keep house sharing with DC (we get on grand). Used to be ill with worry. But now try not to think about it and just enjoy life. I know people who did everything right, scrimped and saved, moved somewhere soulless and isolated so they could buy, but died before any of it came to fruition.

Well said. Reason we’re in this mess in first place.

@DogMa73

Is there a specific reason you are setting up your own business. It sounds at the moment like that's something bf that really doesn't make sense at this time you would be better if getting a paying job and working on that in the background / parking it for a couple of years.

Mid-40s I rent - we are meant to inherit a house but if this doesn’t work for some reason, I’ll carry on working and hope I don’t live long (don’t want to be a burden for my children) - saving for a pension that probably will pay for a single ticket to dignitas. The conclusion : I’m praying for not a long life !

For those renting, what’s the one thing or rule change that could make a difference to your situation?

do you think inheritance will make a difference and do you have any other savings?

In some countries you can use pension savings as a deposit for a house, would that kind of thing make a difference if it were available?

Especially for pp who said that the HB threshold is £16k and that’s not enough to buy a house, pension savings not counted in that but if you save into pension you can’t access the money.

such an eye opening thread thank you all for sharing

This comes across as so spiteful.

Those of us who rent made sacrifices, and saved for deposits, believe me. But difficult things happen in life, like domestic abuse, bereavement, disability, illness and caring for others.

We all pay tax, quite possibly a lot more than you. I wouldn’t support policies that deny you help if you were in need, just because I paid a lot more tax and made better choices than you.

In some situations, I think renting can be simpler. I inherited the house I live in but due to ill health I'm unable to work and I'm not sure if I'll ever be able to work full-time again. I have no income and no savings and therefore receive disability benefits. I don't know how I will afford the upkeep of the house long term. Even if I could save, I wouldn't be allowed to have over £6000 which doesn't go far when repairs are needed, boiler needs replaced etc. I can't downsize because there isn't anywhere smaller and cheaper to buy! If I sell, I can't rent because I don't work and don't meet the minimum income requirements. Obviously not entitled to social housing because I have somewhere to live but if I sell up I would be considered making myself "intentionally homeless".

Its a worry.

Mortgages that run to 70s and 80s. Ridiculous you have to pay huge rent yet can’t borrow on a 25-30 year term beyond 50.

These days, when lots of people don’t have kids until late 30s, 50 isn’t what it used to be.

I could afford to buy if it weren’t for that.