Copy article

Will renters have a poorer retirement?

Journalist: Marc Shoffman, Freelance

ended 24. April 2025

Helloo, I am writing a piece fo MoneyWeek looking at research from Barnett Waddingham which claims that renters expect to retire with £2,000 less in annual income, and are far less likely to have clear financial goals in place. 

With more than a quarter of over-50s still renting, it warns that this is a cohort at serious risk of financial hardship in later life.

I am looking for retirement experts/financial planners, to comment on whether renting has poorer outcomes for when you retire? Why would this be the case?


 

1 responses from the Newspage community

Copy all

Copy

Editor
Anita Wright
Chartered Financial Planner at Ribble Wealth Management
Unlike a mortgage that is typically repaid by retirement, renting introduces an ongoing monthly expense that can persist indefinitely. This cost must be factored into retirement income planning. Moreover, rental prices are subject to inflation and market pressures, meaning rents may increase over time, potentially outpacing the growth of retirement income. This can place strain on retirees finances in the later stages of retirement, especially as other costs—such as healthcare—may also rise. Despite the financial implications, renting allows flexibility to relocate more easily, whether to be closer to family, downsize, or move to a more suitable environment as needs change. For homeowners, selling a property to rent can release capital to bolster retirement savings or fund lifestyle goals, including care needs. While renting can simplify aspects of later life, the recurring and potentially rising cost must be carefully integrated into long-term financial planning.