One in three pensioner households could be renting by 2044 – is it time to rethink retirement housing?

One in three pensioner households could be renting by 2044, according to a new report from ABI conducted by the Pensions Policy Institute projections[i], prompting retirement rental specialist My Future Living to urge older homeowners to rethink traditional assumptions about later-life housing.

While owning a mortgage-free home has long been seen as a cornerstone of retirement security, retirement rentals specialists, My Future Living says changing lifestyles, longer retirements, and rising living costs mean more people may need to reconsider whether staying in the family home is the best option.

For many retirees, a significant proportion of their wealth is tied up in property but accessing it can be difficult without downsizing or moving. Selling a larger property and moving into retirement rental accommodation could help some homeowners release capital, reduce the financial pressures associated with maintaining a larger home and create a more flexible approach to later life.

Joanne Couch, Director of Finance and Operations at My Future Living, says: “For generations, owning a home has been viewed as the ultimate retirement goal. But retirement is changing. People are living longer, housing needs are evolving and many older homeowners are now asset rich but cash poor.

“Downsizing or renting will not be the right choice for everyone, but for some people it can release money tied up in their home, reduce financial pressures and provide a lifestyle better suited to their retirement years. Renting in a retirement community offers the independence of your own home, with the reassurance of a friendly, supportive environment whenever you need it.”

For 77-year-old Jean Wray, moving from a larger owned property into a retirement rental apartment has given her the freedom, security and community she always wanted in later life.

Jean moved from North London to a retirement community called Homeshore House in Seaford, East Sussex where she rents an apartment because she was looking for a quieter pace of life near the coast. Jean says: “It was a great decision to move and now every day I enjoy stress-free living.”

A former legal secretary, Jean is active and sociable. She helps organise events for residents including bingo evenings, garden centre trips, pub lunches and film afternoons, while also volunteering with charities supporting people recovering from strokes and those with sight problems.

For Jean, one of the biggest benefits of renting in retirement has been removing the pressure of maintaining a larger property while freeing up money to support her family.

Jean concludes: “I used to own a lovely house but maintaining it was getting harder. I also wanted to free up some money so I could help our son with a deposit for his own place. I now have a worry-free life, and if something needs fixing, it’s sorted very quickly with no stress.”

Retirement housing decisions are becoming increasingly important as more people rethink what financial security in later life looks like. With renting expected to become far more common among future pensioners, retirement rental is set to become an increasingly important part of the retirement housing mix.

For more information visit: www.myfutureliving.co.uk.