ONS: Future generations more likely to rent
Future generations are more likely to live in rented accommodation than today, according to the Office for National Statistics.
Data collected by ONS shows that among households in England containing someone aged 60 or over, less than half who rent have savings or investments.
In contrast, of those who own their homes outright, three quarters have savings or investments.
However, while a quarter of those who own their property outright have at least £50,000 in savings, a quarter has no savings at all.
The Decent Homes Standard classifies almost a third of privately rented properties and one in five properties owned outright, that are lived in by older people, as non-decent overall.
Furthermore, older people living in rented properties are less likely to have moved recent, which ONS believes suggests security of tenure becomes more important with age.
Steve Wilkie, managing director at Responsible life, said: “Millions of pensioners are facing a miserable retirement when they should be enjoying the fruits of a lifetime of working hard, because of the financial burden of paying rent or covering mortgage payments.
“It’s a worrying trend that more people in retirement will be renting from private landlords in the future.
“It leaves millions facing not just the financial burden of paying rent in later life but also at the mercy of landlords who could choose to end their tenancies at any time.
“And the prospects for older homeowners aren’t any more appealing. The days of being mortgage free in retirement are long gone.
“Many pensioners will still be paying off mortgages well in retirement at a time when their monthly incomes have dropped significantly.
“We have a retirement poverty crisis brewing in this country which the government needs to address before it’s too late.”