Anyone retired and renting?

[Andyrourkerip]

Or know anyone who is? We're obsessed with home ownership as a nation, and constantly told that we'll really struggle as pensioners/after retirement if we aren't on the ladder. Would be interested to hear if that's really the case.

My grandmother was before her passing in 2017, she rented all her life. She was fortunate that the place she was living in she had lived in for 20 years and knew her landlord who controlled her rent. Depending on where you are based there are schemes for controlled rent for those over 55. There is also schemes for retirees to purchase houses at a reduced cost if you did find yourself needing to get on the property ladder. Of course there is no guarantee that these schemes (or something similar) is going to exist in X amount of years but if you are almost at that age then you might want to look into them.

That's not strictly true. Only if you are a couple and 1 of you is still "working" age and the other is on pension credit then (if claiming UC), you'll be affected by the bedroom tax. A couple both claiming state pension with or without pension credit top-ups, will not be affected.

You didn’t say it, I’m saying it. As women, we have so many structural disadvantages when it comes to money already. The gender pay gap. The fact we are more likely to go part time or leave employment to care for others. The fact we have lower savings, so less opportunity to invest and accumulate wealth. This all has a huge impact on pensions, so that women in the UK have around 35% less private pension wealth than men.

The only way to bridge the yawning gap is to financially educate yourself, build assets young and accumulate wealth. And dodge all the expectations society places on women for care work and unpaid domestic labour, of course. Don’t be blasé, be savvy. Please 🙏

My MIL is retired and renting. She only worked for about 20 years in her whole life, so doesn't get a full state pension. However, she gets pension credit (which is a couple of pounds a week less than full state pension) but it entitles her to full housing benefit (she lives in a council house) and full council tax paid for her.

Someone with a private pension wouldn't get that automatically, it would be means tested, and if they had a private pension would conceivably be little better off.

The issue of pensioners who pay rent has been a matter of concern to social welfare people for a while. Pensioners with private + state pensions are likely to find that they're little better off that pensioners on state pension alone, as a big chunk of their private pension will go on rent and council tax, especially if they are renting privately as rents are so much higher. And the benefit bill go up significantly.

I'm still working part-time, but am over pension age. I get a private pension of a bit over £300 a month and full state pension. I'm lucky enough to have paid off my mortgage, and when I stop work, the only help I will get is around £90 a month reduction in my council tax, and I will have all the costs of maintaining my home.

I'll be very jealous of people like MIL, who only have to pick up the phone when something in the house needs fixing!

For those nearing retirement and renting privately, it's worth considering registering with the council for social housing. It's much cheaper, and it's easier to get than most social housing as properties for older people become available a lot more often. One of my colleagues got a great HA flat after only about 9 months, and she was still working.

We will probably rent forever. Not idea but. It much I can do.

DM is 74 and is renting. She’s in what was sheltered housing though they changed the category not long after she moved in. There’s no warden on site now just pull cords etc that go to a call centre. housing benefit pay for it and all the services charges and she can’t be evicted. So she’s got security and it’s actually very nice.

Obviously I’d prefer to own a home but poor life choices when younger and the massive amount we now have to pay in rent will make it impossible.

It's not different LA rules, it's because the max that can be paid in HB for private rentals is capped at a level equal to an average of the lowest 30% of private rents of the same size, and even that has been frozen for some years, so it's now loads lower than actual private rents.

Yeah, most of those old "sheltered" places offer very little now, in terms of support.

But, they are usually quiet and secure. For poorer pensioners, the rent gets paid.🙂

I agree with you in parts, meant where did I say I was a woman. You assumed.

Owning property isn’t the only way to wealth, in fact buy the wrong property/at the wrong time and you can be worse off. It’s not a one size fits all.

I wouldn't have worried about it if I had social housing but even now, not retired yet but in its sights, I can't imagine having to pay private rent out of my wages let alone pension. It is a great comfort to me that even if I couldn't pay my bills, nobody can kick me out of my house.

My mum rents from the local authority and has since the early 90s. She's well over 2 decades into official retirement age and pays full rent and doesn't receive any benefits at all apart from a single persons council tax discount. She receives state pension plus a % of a small inherited pension from my dad but this isn't lots. She seems to manage comfortably but has always enjoyed a simple life. She doesn't drive so no car expenses to consider and thankfully has no debt so only pays for rent, ct plus bills. Her heating is on a lot and she eats well but she prioritises these things over other things. She is very frugal as many are from her generation.

I work ft and likely will until retirement age all being well. I can't see me being able to retire early through choice. I do have a private pension but the projections aren't good, but who knows what will happen between now and then, dh is similar. The one thing I'm thankful for is getting onto the property ladder early and at the right time, although we're still in our small first house nearly 25 years later so no major downsizing to be had. Between dh and I, assuming we receive state pension which we should (who knows with our government!) plus our small private pensions we should hopefully be ok as the mortgage won't be and issue, only bills and maintenance, but it won't be a lavish retirement I suspect.

I think renting in retirement depends a lot on your other commitments, projected income, lifestyle expectations, private/LA rent etc. I'm a worrier, so even with owning a small house, I'm still concerned.

Yes, I assumed you’re a woman but who really cares.

It’s rare that property is a bad investment, especially if you’re Gen Z with the potential to own it for decades. No point looking for the exceptions that prove the rule.

Anyway, it’s up to you how you plan for the future. Take heed and good luck.

I'm planning a park home retirement too. I have shared ownership and can't afford to staircase, so rent 50%, my plan is to sell my share and buy a park home with the proceeds.

My DGF does. Pissed away the money he got when he divorced DGM (who owns her home outright and did from the beginning of the divorce, so he had the same possibility - just didn't!). He moved into a lovely but expensive flat and now that he is much older and quite sick, it isn't accessible for him anymore. The whole family are worried about him and we are trying to get him housed by the council but there are barely any flats and he can't afford his rent anymore. It's not something I'd wish on anyone.

I left home and worked myself to the bone between 16-23 to buy my own place and I am so, so, so glad I did.

My FIL and his partner after owning houses all of their lives have just sold up and moved into rented. It is just a temporary measure as they had so many sales fall through they decided it was easier to bank the money and let it gain interest for a while. They plan to buy again next year when hopefully the market has bottomed out.
In the meantime they're renting a lovely modern flat and are absolutely loving ringing the landlady whenever things go wrong.

I rent, it's brilliant. I shall be collecting my state pension in a year or so and will manage quite happily on that alone (I have no private pension at all).

I'm in beautiful accommodation, secure for as long as I want it, specifically for those over 60 so quiet and very, very low rent. Also hardly any bills....we pay a contribution towards bills which is set every month and we can use as much water/electricity or heating as we like without any extra cost.
The place is in beautiful grounds, rural location, someone else does all the repairs (for free) and looks after the grounds. I don't want the hassle of owning my own place nor all the overheads/insurances/repairs etc.

There are plenty of these sorts of accommodations about if older people look, and the rents are a fraction of normal prices so easily affordable for those who only have a state pension to live off. Renting isn't all doom and gloom.....
And if (or when) I need to move into care or pass away, there's not much for the family to sort out or sell etc.

I'm a real advocate of renting, I much prefer it and wish the UK wasn't so fixated on home ownership, there are other options....

Not necessarily
My dad is in rented accommodation and doesn't claim anything except single occupancy council tax
State pension and small private pension

Surely this is simple maths.
In your area what is the average pension.
What is the average rent.
Do the sums work.

I'm on a CS pension, only recently started and early 30s, hoping to stay until retirement.

If you consider that mortgages are usually over 25 years, and she's been paying rent for 40 years that's an extra 15 years worth of money down the drain. Which would have certainly been more than any repairs paid out.

U OK hun? 😬 You sound very angry.

As for me @Andyrourkerip me and DH live in a little adorable housing association cottage. Tenancy for life, £380 a month rent, repairs done within a couple of weeks of reporting it (the same day if it's an urgent one,) and the cottage is in a lovely rural area. (Was originally built for private sale, but the housing association bought it and put it into their housing stock many years ago!)

We are not yet retired. Less than a decade to go though!

We are very happy and secure in our housing (thank God) and have a decent amount of surplus income thanks to the affordable rent. We will NEVER leave. We will NEVER give it up.

We both have several healthy private pensions to come, (as well as the state one,) so we will pay our rent out of that/them when we retire.

If busting your ass in your yoof to be a mortgage owner makes you so angry as @Nospecialcharactersplease are you sure it's the best thing for you?

My mum has rented & is now retired but (& I don’t know the ins& outs) but she says she gets pension credit which means a lot of her rent is paid? I don’t know if this is right but she doesn’t struggle & definitely isn’t paying a huge rent.

You’ve misunderstood me. I’m not angry, I’m worried for someone who seemed not to fully grasp the implications of not planning for the future. Other people posted in a similar vein. But thanks for the patronising response, hun.

I’m glad you’ve got such a lovely set up. Hopefully you’ve got enough awareness to concede that most pensioners who rent aren’t so lucky though? My dad lives on a narrowboat and my mum lives in a motorhome. But you enjoy your one-in-a-million chocolate box cottage on social rent with a lifetime tenancy and your many pensions.

Some posters on this thread have first or second hand experience of secure, low rent tenancies that sound amazing and very low stress. In an ideal world these would be an option for everyone.

Unfortunately I'm not sure there will be a large enough supply of this type of housing to fulfil the demand that will exist if and when I get to retirement age (currently mid-thirties).

Owning your own home leaves you less vulnerable to whims of political policy change and landlords rent increases or decisions to sell.

No option is risk free, but relying on the government for pension payments or housing is risky IMO. Especially if you're my age and have potentially another 30-40 years of policy change and economic volatility to get through before retirement. Who knows what things will look like then. It isn't wise to make concrete decisions for decades in the future based on current policy.

If you have a private pension and your own home you have more options and likely more choices and control in your older age.

Agreed. The house ownership is a red herring in some cases. The real heart of the matter is planning for retirement. That can absolutely be done without owning a house.

Yes, anyone can ‘live in the now’ and be fine with having no choices (or limited ones) when they are retired. Personally, I’ve seen the options available to those without means when they need care or housing in old age. I’d rather spend my lifetime of hard work to pay for somewhere I want to be vs having that choice made for me.

Money=choice!