To think that fairly soon it will be impossible to retire unless you're a homeowner?

[Echobelly]

... at least in some parts of the country.

I'm sort of amazed this isn't being talked about - we have more and more people who can never afford to buy, whose rent payments take a significant chunk of their salary, and that chunk only goes up and up. How are they supposed to save for a pension when all their money goes on rent? And there's very little social housing to go round.

Homeowners at least will mostly be able to pay off mortgages, that are likely to be less than rent and allow them to pay into pensions, and have the option of downsizing to help manage retirement.

In the next few decades it seems likely we will see increasing numbers of people who reach retirement age, or may simply no longer be well enough to work, yet their pensions will not cover rent, let alone anything else. But no one's thinking about how society is supposed to cope with this and won't until it's too late it appears.

@TheYearOfSmallThings it probably depends where you are - my mum lived in a private rental, on pension credit & housing benefit (which wasn’t enough to pay the rent but it was cheapest she could find). She had a number of falls & osteoporosis so needed somewhere without steep/any steps, she was always way down the list when she bid for social housing.

She eventually found a housing association flat on zoopla but that was pure luck.

I’m fairly sure they would get full housing benefit. And don’t forget they are not subject to bedroom tax.

So it’s probably easier if anything once you teach retirement age, compared to paying market rent out of stagnating wages.

Whether this remains the same for pensioners in 20-40 years is a totally different matter of course.

Rent caps

Yes, but only if they have paid off their mortgage. I’d still be working ( teaching 5 year olds) until next month when I’d be 66 years old, if I hadn’t been able to pay off my mortgage 5 years ago when my parents died.
A very small teachers pension ( due to years and years of part time with children at home, divorce and losing home- long story) and my husbands state pension would not be enough to pay a mortgage/rent if one or both of us were not working.

Actually I have come to the conclusion that the government's long-term plan is for the poor / disabled / old to die 😞i can see no other explanation for their actions

There is no way we'll afford the benefits bill if pensioners start claiming housing benefit en masse.

This will be the first generation to retire while private renting. Then compound that with the massive change in dependency ratio with fewer workers to support pensioners.

I dont think there will be a non means tested state pension in 20 years time.

People will have to work until they are assessed as permanently unfit to work regardless of age.

Multi generational family living will become the norm.

We need to be building houses fit to facilitate this shift.

This, people who want the triple lock scrapping cos “boomers” need to be careful what they wish for.

Not always. If you are in a private rental it depends how much the rent is and the Local Housing Allowance in the area. You may get some of the rent paid but not necessarily all.

Yup. Covid was quite convenient in many ways.

Then compound that with the massive change in dependency ratio with fewer workers to support pensioners.

Pensions need to be self-funded, not by taking from younger people.

State pension needs to be contribution based to remain affordable - don't contribute much, don't get much back.

@felulageller good points, I agree. Nobody ( apart from obvious wealthy) will be enjoying the lengthy retirement that my parents did in years to come.

I agree. It’s why buying your own home is so important. Rent just goes up and up. Our mortgage is tiny now and will be paid off soon, meaning we can plough more money into pensions & retire early.

& that's not going to only affect renters, funnily enough.

Living alone costs me more than the difference between my mortgage & rent.

I won't be able to 'downsize', I won't get housing benefit.

What is the actual percentage of people who can't afford to buy by the age of 45?

I am 30 this year and most of the people I know (including singles) have managed to buy by early 30s. The only person I know who hasn't managed to buy is living with mum to save up. He will definitely own a home at some point as he is planning to buy in his low cost home town and commute/work remotely. If all fails, he can rent it out or get a lodger (which will subsidize his commuting costs and getting a hotel room in London for 1-2 nights a week.

From what I can see, my generation of millennials are buying later and maybe compromising on things or going to extreme lengths (or getting extreme help) but they will eventually own a home.

Other countries have rent top up for retired plus much higher state pension.

You generally retire on a full state pension that’s approx 80% of your final pay. So someone earning €40k, is now on a €32k annual pension.

The amount of rental top up depends on the area you live in. So those in very expensive areas will receive a higher allowance.

Widows pension is common. So many elderly who’s partner has already died are getting their own pension, plus rental top up, plus widows pension.

It's not going to be possible to give all retired renters housing benefit when there are too many of them. As PP said the bill will get too high.

My best guess is that we'll keep our heads in the sand for as long as possible over this issue, renters will have to stay in work until they can no longer physically do their jobs and retired renters will have to be shipped out to cheaper areas in smaller properties.

I'm in my 40s and largely resigned to the idea that retirement will not be a thing when I am in my 70s.

FWIW, my parents are in their 70s and DF still works. He has said he will work until the day he dies. He doesn't need to and is fortunate enough to have a job he can physically do. It is his purpose in life.

We e spent a shed load of money on our property though which when you rent you never have to. You talk about homeowners like we have it cushty. It's really not!

I’m not sure about the first generation of renting pensioners. Both my grandparents rented in retirement. Didn’t most people rent in 50’s 60’s and 70’s . I thought Mrs Thatcher started the buying boom including the right to buy.

I think increasingly the most important 'class' difference is 'the homeowning class' and 'the renting class' as they will be looking at such different outcomes. But despite coming from the former, I still worry about my kids. Unless something changes pretty radically, our kids' generation will literally be dependent on their grandparents dying in order to buy a home, which you'd hope for the sake of the grandparents will not be at least until well into middle age. And that capital will be stretched thinner and thinner. And if even one of those grandparents needs long-term care, it may be goodbye to any house deposit.

I don't expect to retire in my 60s - partially as I think I'd be quite bored (job not physically demanding) and partially as I might need to in order to get a decent pension. I have a long term condition that means mobility problems are a likelihood in later life, so I am hoping I can call it a day with work when I'm about 70 so I might get to 'enjoy' a retirement before I'm too physically restricted though. I don't think DH has an awful lot sorted for retirement, as he's been self-employed last few years - I suspect we'll be reliant on downsizing to get a decent outcome, and it's even crossed my mind that converting our home into flats and renting one floor out while living in the other might be a sustainable solution.

It's the same now though - retired people can (and do) claim housing benefit.

That’s not true. You can’t just privately rent whatever house /flat you want & get housing benefit to pay for it. For many, it will only cover some of the cost.

And this is yet another consequence of extortionate housing costs. When people brag to me about how their house 'earned' more than they did last year, all I can think is 'you selfish git, who cares about the next generation eh?'

your kid would need to live with you until they save a deposit or even live with grandparents, aunts or any other family members if those family members live near their place of work. I know numerous people living with grandparents as the grandparents stayed in London while the parents moved out to Home Counties 20 years ago.

I think house prices would fall but I think that it would only get harder for the next generation. Reason why I am having one child so it would be comfortable for him or her to live with me long term in a 3 bed flat.