Retiring but not still renting

[bumblebeees]

What happens if you get to retirenent age and are still renting. U can't work as retired but u need to pay the rent etc, so what happens ?

I'll tell you in ten years

You pay for your rent out of your pension.

Well you can work past 'retirement age'

But if you don't you would get housing benefit/ universal credit.

Surely retirement is a choice you make when you can afford it? If you cannot pay your rent without working then you cannot retire. If you become too ill or infirm to work then you retire through ill health which entitles you to different benefits and support
I'm not saying that is ideal but that would seem to be the logic

Nope. UC stops at state retirement age.

You might be eligible for Housing Benefit, depending on retirement income, savings etc. https://www.ageuk.org.uk/information-advice/money-legal/benefits-entitlements/housing-benefit/

You claim housing benefit. Why is that complicated?

If you cannot pay your rent without working then you cannot retire. If you become too ill or infirm to work then you retire through ill health which entitles you to different benefits and support

Alternatively you retire at state retirement age the same as everyone else and claim HB and/or pension credit.

So people will just work until they drop dead then will they? That’s a wonderful outlook. What about people in very physical jobs like scaffolding?

Im amazed some people go through their lives and don’t realise that some people live pay day to pay day, there is nothing left for emergencies, savings and anything but the most basic of pensions if that. What kind of pension do you suppose someone working in the gig economy will have?

You either use your pension to pay the rent or carry on working. It’s one reason why so many people will be working past 70.

The expectation is that you retire at, currently, 67. You continue to rent, if your pensionable income is sufficient by means of working pensions/state pension and if not, state pension top ups like pension credit and housing benefits.

Unless you can pack away a substantial amount in savings and pension, you're better off having nothing. Otherwise all of it will go on rent. If you have nothing, housing benefit will cover rent on a modest place (most likely a room if you can't get into a council/HA retirement property) and pension credit will top up your state pension by a fair amount plus you get all the other bits and bobs of free stuff when eligible for pension credit.

You won't be booking a cruise any time soon but then you won't be booking a cruise any time soon on a pension worth less than £500k if you're paying market rent, council tax, dental plans etc from whatever annuity you get from it.

Well actually, not nothing. Just less than £16k. If you want to leave anything for your kids, start now buying a bar of gold every now and then or a painting or vase or something.

Unless you can pack away a substantial amount in savings and pension, you're better off having nothing.

There is a certain amount of truth in this. A huge proportion of people with low or average paying jobs are saving into pensions which will merely relieve the state of giving them an equal amount, or more if they are renting.

Pension credit is a gateway benefit but you can easily end up with it only being worth a few £s a week - still worth trying for it through. Housing benefit will only be at the most basic rate, for example in my area for a pensioner on standard state pension it's around £150 a week. A 1 bed flat in this area is £950 a week. You'd get a 25% reduction in council tax if you lived alone. So you'd have some help, but would it be enough?

Why do you ask OP, what's your situation?

I agree with this; I get a small private pension of £240 a month - so when I retire, on top of the state pension, that will take me to around £1k a month to live on. It will also disqualify me from almost every benefit. My plan is to own a small place outright by the time I retire (will have to be very small as I won't be able to afford things like service charge etc).

@DarkDarkNight I do realise that people are going to struggle but, unfortunately, that's the hard truth of it. Retirement is becoming a luxury.
The State Pension is a giant Ponzi scheme where older investors get the payouts from newer ones. Ultimately it will collapse, the question is just how far down the road politicians can kick the can

Thanks all. I'm asking because right now I'm late 30s with 2 kids and privately renting and can't see me ever being able to buy. We both have very working class/low paid jobs. We do ok as we get government bell but it makes me wonder about the future. Obviously we save what we can but it's hard and every time we do build it up, something needs doing like work on the ca etc

Typos - work on car and government help not bell

MIL was in this situation before she passed away in 2020. She has no pensions, no savings and was in private rental. Unless it’s changed, she moved into a housing association sheltered accommodation flat near us very quickly. There aren’t many going for over 55 flats. Housing benefit covered the rent. She got council tax paid. She got pension credits. She also had a free bus pass and other benefits like glasses and prescriptions. I remember she had to pay TV licence for some reason. She was doing ok and had left over money and savings! That’s before the cost of living crisis however.

Oh just saw you are 30. I wouldn’t bet on having anything left for us. The difference for the boomers were they have a much larger younger population to support them. Look at the change in the U.K. demographics. We are all going to work till we drop. My family was originally from Hong Kong and you can see very old people working. They can’t afford to retire.

All the time on Mumsnet I see ppl either owning or rent but rent with big salaries. So I often what happens to the paupers like myself. And I'm late 30s nearly 40 in fact

I think you need to assume you’ll be working full time until 67 as the very minimum.

how old is your youngest child now? How many years will you have between them turning 18 and being 67? That’s the next hurdle, as your income could reduce quite a bit at the point of them no longer being a legal dependent.

Its still worth putting yourself on council housing waiting list as some areas do have over 55 council housing and there is often a better chance as a couple than a family. Its still renting but at least its secure.

And when they retire, their income drops as well, and that expensive rental still has to be paid for.

You need to plan what your future looks like - far too many people "suddenly discover" they can't afford to retire far too late.

@BranchGold youngest is almost 3 years old