Copy article

One in three pensioner households could be renting by 2044

ended 09. July 2026

One in three pensioner households could be renting by 2044 according to the ABI’s latest report, Pensions Adequacy: Housing, Households and Auto-Enrolment. The research finds that nearly two million more people are expected to retire without owning their home, marking a major shift in how future generations will experience retirement. Most of this growth will come from private renters, where the number of pensioners renting is projected to more than triple over the next twenty years, increasing by 1.3 million people. This press release is an easier read as it summarises key points. We'll be publishing this story tomorrow AM so if you want in, deadline is 22:00. Lots of angles here so have at it.

5 responses from the Newspage community

Copy all

Star Quote
Copy

Editor
Aaron Strutt
Product and Communications Director at Trinity Financial
One in three pensioner households renting by 2044 is a worryingly high number especailly now that so many landlords have left the rental sector and rents are already unaffordable for lots of people across the UK. There seems to be a lot of debate (especially on social media) discussing whether people should buy a property or rent. While renting is fine when you're younger and working, especially because of the freedom it gives, it is much harder when you are older and not working. It is even tougher when older people do not have a huge pension or investments providing them with a regular income. Banks and building societies are doing a lot more to issue mortgages with income stretches and longer terms to lower monthly costs, they have also increased their maximum age limits in recent years. As you get older, most people want more secuirty especially when their housing is concerned and they do not want to be moving home every few years. The bank of son and daughter will be busy.
Copy

Editor
Rob Mansfield
Independent Financial Advisor at Rootes Wealth Management
This is a perfect storm that only looks like its going to get worse. This shows just how bad the cost of living has become. It starts with being priced out of the housing market but it leads onto not being able to contribute to a pension. By the time 2044 rolls around, when there will be hardly any final salary pensions left, it's looking like the state pension is going to form the lions share of peoples income. If most of that is going on rent, what are people supposed to live on?
Copy

Editor
Rebecca Robertson
Independent Financial Adviser, Planner and Director at Evolution Financial Planning
The findings suggest that housing and retirement planning can no longer be considered separately. Future retirees may need significantly higher levels of pension savings to maintain their lifestyles while continuing to pay rent. Women are particularly vulnerable, especially following divorce or bereavement, with divorced women aged 60-64 holding average pension savings of just £35,000.
The report serves as a warning that while auto-enrolment has increased pension participation, saving levels may need to rise if future generations are to achieve financial security in retirement.
Copy

Editor
Jamie Elvin
Director at Strive Mortgages
For many people, the biggest pension they’ll ever have is the equity in their home. If homeownership continues to fall, retirement could become increasingly dependent on the private rental sector at exactly the stage of life when people need the greatest financial security. While renting suits some lifestyles, owning a home before retirement remains one of the most effective ways to reduce monthly outgoings and improve long-term financial resilience.
Copy

Editor
Harvey Dhillon
Founder & CEO at Zmartly
The figure that stops you is not one in three. It is that the average defined contribution pension pot is around £154,000, while renting a two-bed privately through retirement costs £200,000 to £400,000. For a lifelong renter, rent alone can swallow the whole pot before another bill is paid. That is the flaw this report exposes. Auto-enrolment's 8 per cent minimum was modelled on a retirement where the mortgage is cleared and housing costs fall away. For someone who rents for life, that never holds. The people I worry about most are the self-employed, who sit outside auto-enrolment altogether: the contractor, the sole trader, the online seller renting their flat, with no employer paying in and nothing saved by default. If that is you, treat your pension as a fixed monthly bill, not what is left at month end, and use the tax relief that makes it cheaper than it looks. A homeowner's pension pays for living. A renter's pays the landlord first.