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Original poster

To wonder how people who rent are able to retire?

63 replies

incorruptibledream · 04/01/2018 22:45

How do people who rent pay rent on a pension? Do renters have to move into over 65 type accommodation with cheaper rent or is help available?

OP posts:
Viviennemary · 04/01/2018 23:12

It isn't really an issue at the present time as they will get housing benefit and won't have the problems of repairs that house owners face. Whether this will remain the same in future is anybody's guess. In fact a lot of elderly people are better off at the moment renting as they won't face property maintenance bills.

Smallpotatolove · 04/01/2018 23:12

You can get housing benefit of you rent privately. You don't need to tell your landlord although obviously it is tricky if you need to move. Not sure how likely it is you would qualify for it though on a state pension.

Gwenhwyfar · 04/01/2018 23:14

Vivienne - housing benefit doesn't usually cover all the rent so I'm not sure how it's not an issue. Pensions are lower here than in other countries in Europe too.

Gwenhwyfar · 04/01/2018 23:16

Smallpot - the state pension is obviously not enough to cover rent and everything else so why would a pensioner not qualify?
You're right about the problems of getting a new rental home when on HB.

lisara79 · 04/01/2018 23:20

if you live somewhere with reasonable rents... i.e. social housing... HB will help to cover it and you'd be no worse off than owning you're own home (could be better off without repairs). The problem will be for those people in areas with high private rental costs where, although HB will pay some of the rent... it won't cover the rent, or enough of the rent, to allow people to actually live on their basic pension. Where I live, rents are not too bad and there is a large amount of older persons social housing so people can manage but those people in the south east are at most risk. Get on those social housing waiting lists of you can t buy!

MammaTJ · 04/01/2018 23:21

I rent, but am lucky enough to rent from HA. I have rented from them since 1993. If I had bought, I would have paid off my mortgage by now, but I married a man who had had a house repossessed before we met.

He left me in 2003.

Then I met DP had two more children in addition to the one I had with ExH. ExH had left me in a lot of debt, including rent arrears. I had to pay off those arrears before I could remove him from the tenancy. So, in the time it took me to get rid of the arrears, during which I had two babies (so technically DP was paying off the arrears) my Ex could have given notice on my house, that he no longer lived in, and I would have had to move out.

Anyway, no fabulous pension here, living on benefits now, due to not being able to work, although DP works full time.

This is worrying me and has done for some time.

What we will do it downsize when the DC leave home. I quite like the look of the two bed bungalows down the road. The rent will be cheaper and likely covered by housing benefit. Although, the 'bedroom tax' does not apply to the 'elderly', so maybe I could be selfish and stay here I will not do that., although I won't actually be elderly when they move out (I hope).

Lifechallenges · 04/01/2018 23:21

We are not in that situation but actually it's very scary

Viviennemary · 04/01/2018 23:22

But the older people I know if they are on a good retirement income then no problems. And most of the older people with a good pension will own their own properties. But people on low pensions having to maintain their own property is a huge worry. Whereas people renting then the landlords pick up the bill for repairs. And they'll get most of their rent paid by HB.

Birdsgottafly · 04/01/2018 23:22

"I would imagine council tenants would get help but private renters may be in trouble."

Housing benefit is based on the person and in some areas private rents are similar to HA rents, so being in a LA flat, won't make things any easier.

" i thought OAP got housing benefit and state pension despite whether they own their own house or not?"

You get HB to help with housing costs. Renting in most areas is more expensive than paying a Mortgage and most people have paid off their Mortgage at Retirement age. So people who rent have potentially more to pay out.

Gwenhwyfar · 04/01/2018 23:28

" in some areas private rents are similar to HA rents, so being in a LA flat, won't make things any easier."

But in many areas council rent is much lower so obviously will make things easier.

jcsp · 04/01/2018 23:36

I’d soon be in trouble if I were renting. Especially if I were single.

Before I retired I was a teacher and after some modest rising through the ranks ended up on mid 30s.

My pension is about 14. I pay tax on some of this.

So if I’d been renting a house more or less in keeping with my salary post retirement most of my pension would go on rent. Unless I moved but going smaller doesn’t seem to reduce rent that much. No money left for much other than food. I’d also be at the mercies of inflation and greedy landlords.

For myself I’m grateful that I was encouraged to buy as soon as it was possible and have financial hardship at the start of my working life rather than in retirement.

I worry about others who haven’t or aren’t in the fortunate position that I was in.

This is, sadly, going to be a worry and problem for many. Many who, for them, made all the right decisions.

I’m not sure how other countries, and their pensioners, manage where rental has been the norm for the majority for ages.

Whywonttheyletmeusemyusername · 04/01/2018 23:42

I'm in this position. I'm scared of the future. bearleft , that is exactly my attitude.

chatwoo · 04/01/2018 23:42

I worry about this too. Am nowhere near retirement age but if I/we took out a standard 25 year mortgage now, that would take us to state pension age. Not that we are in any position to get said mortgage!

Gwenhwyfar · 04/01/2018 23:45

"
I’m not sure how other countries, and their pensioners, manage where rental has been the norm for the majority for ages."

State pensions are higher in other European countries.

gamerwidow · 04/01/2018 23:48

Housing benefit, it doesn’t have to be a local authority property you can get housing benefit for any rental property. They’ll give you the maximum local authority amount for the property size depending on your income. What that maximum amount is depends on your council but in some areas will cover full rent.
I think if you rent you are actually better off without a private pension because whatever you get in pension payments you lose in housing benefit.

iBiscuit · 04/01/2018 23:54

State pensions are higher in other European countries.

Housing costs are lower in most countries.

MyBrilliantDisguise · 04/01/2018 23:56

I'm worried about my sister. She won't have a work pension and rents. She lives in the SE, so rents are high.

usernameinfinito · 05/01/2018 00:02

There was a similar thread not long ago and many people expressed their wish for euthanasia to be legal.

AdoraBell · 05/01/2018 00:09

It’s really worrying. We are very fortunate, not renting, but have relatives who do and can’t get a mortgage. Also one who cannot afford to move back from Spain having sold up here thinking they would have the perfect life in the sun.

ohfortuna · 05/01/2018 00:33

presume that rents are also more affordable and the rental market better regulated in other countries where renting is more the norm?

Carameldog · 05/01/2018 00:43

We have tenants about 15 years away from retirement and I do worry for them about their plan. I don’t understand why they’re renting, they both have reasonable jobs and plenty of working years behind them, and I understand they were once owner-occupiers. I would say though that they have multiple nice cars on the driveway and are very often out shopping or on holiday, which baffles me even more.

LuluJakey1 · 05/01/2018 00:44

OAPs don't automatically get housing benefit.

My mum got nothing except her old age pension in terms of benefits. She paid rent and council tax. She had a company pension from my dad after his death.

Oldsu · 05/01/2018 00:47

Iloveidris I really am having trouble understanding what you mean by
Sorry to jump on here but, i thought OAP got housing benefit and state pension despite whether they own their own house or not?"

People who own their own home don't pay rent, HB is a benefit to help pay rent so why would a homeowner get HB?

The state pension (without PC top ups) is a contribution based benefit so again why would owning your own home have anything to do with your entitlement to a contribution based benefit.

TheHodgeHeg · 05/01/2018 02:02

Perhaps it will be the end of the house price bubble and the ridiculous prices will come down. If nobody can afford the rent then rent will fall, if rent falls the amount that a landlord is willing to pay for a house will also fall. So the generation after us will find it easier to buy homes and hopefully won't screw over the generation after them...

Xihha · 05/01/2018 02:25

I live in a block of HA flats that is mostly elderly people, obviously I don't know what pensions they have or who does and doesn't get housing benefit but I do know a few of them still do some work to make ends meet (next door babysits, downstairs irons and does some sewing, opposite does tutoring) We have a private car park, a few have mentioned they rent out their parking spaces. A couple sublet. We are SE so rent is high.

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