How do retired people pay for privately rented properties?

[Afternooninthepark]

Before I start I know I ABU for worrying about my grown sister but the truth is I am genuinely concerned about her situation.
Dsis and her partner are both mid 40’s and on an average wage (she earns more than him). They have had many opportunities to purchase a small property in the past but her partner has never been that keen and prefers to rent everything (they rent their home, car, tv, phones, fridge/freezer, oven etc!) so basically, virtually everything in their possession is rented!
I don’t know if they have private pensions but if they do they will be minimal and they have minimal/next to no savings.
I keep telling them that it’s not too late for them to purchase a small property (they have no dc together so wouldn’t need a large place).
There are lots of new builds in our area with help to buy and my parents would lend/give them some deposit money,
Although dsis seems interested her partner is not so much.
I really worry they are going to miss this opportunity and will need to continue to find rent money all the way into their retirement.
What do people in this position do?
Apologies for my naivety but I don’t know any pensioners in private rented houses so have know idea what will happen when dsis hits retirement age if she is still privately renting?
Does anyone have any experience of this?

I think that unless your sister has additional needs or you are in any way responsible for her care and wellbeing that you should assume that she is perfectly happy in her circumstances, whatever they may be.
Is she in an abusive/controlling relationship? Because that's a different matter - but her long term financial/residential security is really none of your concern.

I assume with pensions, state of otherwise ,topped up with pension credits for people on low income and housing benefit ?

Neither of them have any additional needs and I know its her life but as her older sibling she has always come to me to help bale her out (emotionally mainly) as she has made some stupids mistakes in her life and often continues to do so! And can just see her doing the same in old age and coming to me for support!!

There are benefits available for pensioners, which will pay towards rent. Obviously the benefit system is constantly evolving so who knows what will be available by then.

The pensioners I know who rent are in social housing. So either their private pensions or through housing benefit.

In regards to help to buy - all the people I know 40+ avoid it if they want to buy their first property as that's the property they think they are likely to stay in for the rest of their lives.

Housing benefit will cover it to a point. But only a one bed place probably. Depends where you live and how high the rents are there. Honestly, I wouldn't be committing to a 25 yr mortgage over the age of 40. If one of them suffers ill health and can't work they'd probably lose their home. Yes the same can be true at any age but obviously it's more likely the older you get. Committing to paying a mortgage until you're 70 isn't something I think someone should do unless they have to.

My grandma, who's never done a single second of paid work in her life, is living the life of Reilly at the moment on benefits (which I'm happy for her for btw!). She has a flat in a nice area of Newcastle paid for from the government with a security man and guest room; council tax is paid. Free bus pass so goes to the beach, countryside, in to town. She gets £170 (I think?) per week state pension. She has absolutely no idea what to do with it all, at least £100 left over every week. Keeps buying new ornaments. Hides the rest under the mattress.
So, if things stay as they are, unlikely; your sister will be fine.

I did read an article a few years ago about how so many people now, in their forties, are renting, that in 20/25 years time the goverment is gonna be hit big time with all these retired people needing help to pay rents...

They get housing benefit currently.........tbh id be lying if I said I agreed with it. We end up with a scenario where those who have scrimped and scraped for a home are penalised as they then have to maintain that home out of a pension. Whereas someone who hasn't bothered and may never have worked will have a home maintained albeit to a minimal standard. Life will be a lot, less complicated.

I don't think the current generation is going to get the same sort of support, we'd be mad to rely on it.

They get housing benefit currently.........tbh id be lying if I said I agreed with it. We end up with a scenario where those who have scrimped and scraped for a home are penalised as they then have to maintain that home out of a pension. Whereas someone who hasn't bothered and may never have worked will have a home maintained albeit to a minimal standard. Life will be a lot, less complicated.

Added to which, the homeowners will have to pay for their own elderly care, whereas - no, stop me now. I'm beginning to sound like a Tory.

Most people don’t scrimp and scrap for a home though do they? They want one, save a deposit then pay the mortgage back every month for 30 years. Not that mind blowing.

Presently pensioners would claim housing benefit. Once you reach 50 there is a good supply of Older persons housing which is social housing and easy to get into. Then you have a home for the rest of your life providing you behave

I sort of agree with the 2nd poster, however it often doesn't back to another member of family to bail the other side out due to naiverty etc.

I am a similar situation in that my DS doesn't have a will, neither is she married. She has been amibilvant about both and she has been warned what will happen if she doesn't address this. Yet she doesn't do anything about it. Sometimes you can take a horse to water etc etc

It's paid for by housing benefit at the moment, and they get pension credit.

But that's not a guarantee for the future, and even if it is at the rate private rent costs are rising housing benefit won't cover it.

she has made some stupids mistakes in her life and often continues to do so
Some people aren't cut out to secure a mortgage, commit to payments, tbf I think lots of adults who continuely make stupids mistake and don't grip reality do have some undiagnosed additional needs,
I'm not talking of those who never worked, but the people who work, act like an adult but not there, they're usually very disorganised and irresponsible, and as above continue to make stupid mistakes.
Leave you sister to deal with her own life.

Sorry, why should we be happy that your Grandma hasn't worked a day in her life yet is being supported by the rest of us? Of course its all too late now to do anything about this but this is why some of us get so annoyed about benefits. They are not meant to be a lifestyle choice.

The benefits system is pretty generous to pension age people (compared to working age people, that is). It may well change by the time your sister reaches pension age. But currently pension age people are entitled to the State Pension (depending on NI contribution record), Pension Credit, Housing Benefit and Council Tax Reduction (the last 3 are means-tested). Pension age people on low incomes are more likely to get social housing because some is only for 55+. In social housing the rents are lower and pension age people are exempt from the "bedroom tax" so if eligible for full HB it will cover all their rent. In private rented housing, HB will be capped at a local rate (the Local Housing Allowance).

She will be fine, basically. She won't have a huge amount to live on but she won't be homeless.

I don't particularly want to enter into a Daily Mail-style debate but I would like to point out that home ownership still has advantages over being a social housing tenant, mainly full choice and freedom about where you live.

Of course it's your sister's choice - even if you feel she is just going along with her partner, she has chosen to do that - so i would tread very carefully if I were you.

They get housing benefit currently
OP said they both work, pay tax and rent with no DC.
Wondering how they'll manage this on a pension, I am dyslexic so may have missed they get HB.
Lots of quick assumptions.

Silly to be renting all their appliances - they’ll be paying far more than their worth.
I would hope people who didn’t buy and rented would save money and have it to continue to pay rent. Or keep on working. There won’t be enough housing benefit available as we are an ageing population.

The potential cost of rent payments for pensioners is viewed by social policy wonks as the next "pension crisis".

Because the proportion of people able to buy their homes is falling, and cheaper social housing now provides a minority of tenancies, there will come a time when a lot of retired people will have no means of paying their expensive private rent.

Currently, about £25bn is spent on housing benefit (only pensions, illness/disability and benefits to top up low paid work are higher) and projections indicate that this is likely to rise as the proportion of tenants reaching retirement age increases.

Tenants who've paid into private pensions may find they're no better off for having done so, it'll all go on rent until they're left with the same to live on as someone who hadn't bothered.

Your Sis is daft not to buy if she can, OP.

I think you've missed the point of my post @sunglasses123. I haven't asked you to be happy for her. I also didn't pass a comment whether i thought it was right or wrong. My point was in response to the original question, at the moment those who haven't funded for themselves, are funded. Rightly or wrongly. But really, what else can be done? She's 90 years old, so can no longer work. The opportunity to force people to work/prepare for their future is long gone by the time they're pensioners.

Added to which, the homeowners will have to pay for their own elderly care, whereas - no, stop me now. I'm beginning to sound like a Tory.

Lol, I have those moments too. Then I give myself a slap and remind myself that there'll always be rich fuckers to tax, at least until we reach the sunlit uplands of a socialist utopia.

As other people have said they’ll get housing benefit and might have to downsize. A lot of people move to over 50s HA properties post retirement too. They’re generally easier to get hold of than normal HA properties.

Most people don’t scrimp and scrap for a home though do they? They want one, save a deposit then pay the mortgage back every month for 30 years. Not that mind blowing.

Not when interest rates are low, no. But back when mortgage rates were 15%, my mortgage was a lot more than I could have rented the place out for.

Savings, pensions, investments, housing benefit.

Thanks for the info everyone.