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?

About the granny in Newcastle. It’s so hard to judge people of the older generation. They may not have done paid work but a lot of the labour at home was very tough (eg no washing machines) and many cared for relatives (widow(er)’s children, elderly) which people would often be paid for now. There was also a generation who were not allowed to work after marriage and who faced significant sex discrimination if they were to get paid employment... perhaps it is true that she didn’t do much work, but it is not necessarily the case.

People do scrimp and save for their home. It doesn't just magically happen regardless. You need to make good decisions, you definitely need to be working but sorry - I remember many many years ago madly saving, not going on holidays for a few years and eventually moving into a 1 bed flat.

We scrimped and saved for our house. When we first bought our property the interest rates were really high, we sat on bean bags and my dh made our kitchen. We worked very long hours to pay our mortgage off and now (hopefully) we have a roof over our heads for life. I worry my dsis won’t have that security in her later years but I guess it isn’t my problem (still concerns me though).

Im divorced, mid 40s. I rent and don't earn enough to get a mortgage. I assume I will not be able to retire due to housing costs, so just expect to literally work until I die.

Yes @lakiekady but presumably you’re taking about the early 80s so really rather a long time ago. Your house was also far cheaper so you have to consider the difference in paying 15% on £40k vs 2% on £300k.

Just wondered, does everyone, no matter what their means have to contribute to their social care (where necessary) when older? Talking about nursing home care really.

Would someone just on a State pension and receiving housing benefit have to contribute a % of their pension for their care?

I could look it up, but someone might know. Thanks.

Washing machines have been around for a long time Namenic my parents are both 77 and we always had a washing machine as did my long dead grandparents .

People don't scrimp and scrape for a home ??

Well we certainly did. My partner, DD, DS and I lived in one bedroom at my mum's to afford our house. We couldn't afford to rent and save. And for that year other than paying rent to my mum we lived on the bare minimum. Buying a house was instilled in us as it was security .........as the years have rolled on I wonder why we bothered. We're skint, the house is falling to bits and needs a lot of repairs. As a carer to my son we'd be better housed and better off financially on benefits.

Personally I think the government needs to introduce a scheme where long term renters don't need a deposit for any mortgage. If they've paid rent continuously then that should be all the proof they need.

Just wondered, does everyone, no matter what their means have to contribute to their social care (where necessary) when older? Talking about nursing home care really.

Would someone just on a State pension and receiving housing benefit have to contribute a % of their pension for their care?

I could look it up, but someone might know. Thanks.

Think it depends on the local council but my nana is in this situation and has had is contributing from her state pension.

@Reythelastjedi

Thanks for the info. Maybe different policies apply to different councils.

Will check it out later. Thinking of an elderly relative here. OK for now, but down the road a bit.... who knows.

I don't think we should necessarily excusing people for not working. My DM is 87. She has always worked (not in the last 20 years btw!).

If she needs care her house will need to be sold. It doesn't seem fair that some don't work and get looked after by the state and others like me Mum who was a teacher gets to fund everyone else's decision making.

Sorry- I have gone a little off thread

People who can pay for their own care get to choose exactly what they want (provided they can afford it!)

People who can't pay for their own care and have to rely on the state will have limited/no choice and probably a lower/minimum standard of care.

AnotherEmma - that isnt strictly true. My DF waited for a place in a sought after home and he was a self funder. Now he is there there are plenty of people who are being fully funded by the state, getting the same meals, same room etc.

He is paying a shocking price but its London so I guess that is to be expected but others not paying are literally being funded for everything by his fees

Well exactly. Those who complain about people getting “free” care wouldn’t want to be in one of those homes. The same way home owners who complain about other people getting social housing wouldn’t want to live in social housing themselves. It’s just that no one likes to think of anyone getting something for “free” that they had to pay for. So they like to take the moral high ground and cast scorn on the “scroungers”.

Indeed

Yes people who are funded by the council can end up in lovely homes. But they didn’t chose them. They could’ve just as easily ended up 100 miles away from home with their spouse in another home equally far away.

All is it is an extension of a council house. Why doesn’t everyone try and get a council house? Because most people want to chose their house- it’s size, location, appearance etc. People who live in council houses just get allocated anywhere. Some live on lovely safe estates in a nice house and some live in a damp tower block in a ghetto. That lack of choice and autonomy Carries over to their social care.

More to the point why would someone who has been self sufficient all their life suddenly want to be housed by the council in their last years in a care home? Surely that’s what you work for, to ensure good care in your last years

As a country we have our collective heads in the sand about this. Its hard enough to afford private rent when you are working, how is the government going to pay out all the benefits needed for retired peoples rent? Are people going to be shipped out to low cost warehouses on retirement? The current system doesn't seem sustainable in the long run.

I have some older neighbours who rent privately. They are well beyond retirement age, but are still working.

While I of course don’t know their financial circumstances, I assume had they paid off a mortgage by now, the would retire.

Lots of people do rent privately their who life, I assume they just factor this costs into their long term plans.

The system we have is such that some people pay in and don’t take much out. Some pay nothing in but take a lot out. Many of us are somewhere in the middle. Would any of us really want to see 80 year olds sleeping on the streets? I know I wouldn’t. Things will change, more and more will be means tested. It’s why they have brought in work place pensions. But we can’t leave elderly people on the streets and I can’t imagine any government suggesting such a thing.

@Namenic - you're spot on. My granny was from a generation where the men 'worked' (as in got paid), and she was at home 'not working' (ie unpaid) but 100% responsibility for caring for their 8 children (of course she had zero choice in that), all the housework (no washing machines etc) 24-7. She's had a very hard life, I'm happy it's easy now for her.

@asta19 exactly- pensioners are vote winners and will always come top of the benefits tree.

My gran was a council tenant because in the 1950s, the council house came with my grandads factory job. This happened everywhere- in order to staff factories in less populated areas and new towns the business and council worked together to attract workers from nearby Cities. Buying their own house just didn’t occur to them- the house, like the pension, came with the job

Oh and both my grans worked but only I traditional female roles- cleaning, school dinner lady, that sort of thing

The thought of people having to work well into their 70’s, maybe 80’s is frightening, just because we are all living longer doesn’t mean people are stronger, fitter or healthier.

I don’t see why anyone should be penalised for not owning provided they have worked. It is nobody’s fault that government policy and strict lending rules mean it is out of reach for many people who have worked hard, scrimped and saved but still don’t earn enough / have a large enough deposit or have had the chance to live at a parents house while saving. Basic housing should be a human right for those who have spent their entire lives contributing to the economy. It makes me so mad that people who are unable to work in high flying jobs may never have their own home.

we all get loads of free stuff, healthcare, roads, emergency services, basic things which are publicly funded because we realise they are essential for modern life and an harmonious society.

Why not include (basic) housing in that category of things which are publicly funded because they benefit society as a whole?