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Multigenerational Living

Should Retirees Rent When on a Pension?

As a whole, renting is on the rise in the United Kingdom. The expansion of the rental market in the UK may be attributed to a number of causes, including rising home prices, stagnant wages, and a general shift in attitudes regarding renting. Still, many of us associate renting with our younger years. Given the cost-of-living crisis that we all currently face, many people are finding that their wages are not keeping pace, making saving for a deposit even more arduous.

Retirement-age renters are also on the rise. It’s worth noting that many retirees who rent would want to purchase a home if they could afford one, but many are choosing to rent instead. In this article, I’d like to discuss the benefits and drawbacks of this approach.

The pros and cons of renting a property during retirement

There will be pros and cons to consider when making a decision of this size, and in the end, your final decision will likely come down to your unique set of circumstances.

Nevertheless, there are certain general benefits and drawbacks to renting throughout retirement that will apply to most who fall into this category, and we’ll discuss them below.

Benefits of renting after you have retired

Free from a mortgage

While renting in retirement will still require monthly payments, you won’t have to worry about paying off a mortgage. This affords you some leeway in how you spend your time, maybe allowing you to relocate closer to family members you’ve missed or to test the waters in an area you’ve always been curious about. Being free of a mortgage is a significant factor for many who decide to rent after retirement.

Equity Release

If you are a homeowner getting close to retirement age and are considering cashing out some of your equity by selling your house and renting instead, you will be of the same mind as many in your situation. Many times, released equity is used to add to pension funds. This gives retirees the freedom and financial security they need to enjoy retirement to the fullest.

Fewer difficulties to contend with

One of the major drawbacks of house ownership, as any homeowner will tell you, is the need to deal with unforeseen maintenance concerns. Fixing mundane but time-consuming issues like general wear and tear, a damaged fence, or a leaking roof may be a major pain in the neck. That’s no way to spend your golden years. It’s tempting to consider renting instead of buying because you’ll be relieving yourself of these responsibilities.

Desired Features

Competition between landlords and developers to win your business is rising in tandem with the size of the rental market. Because of this, a wide variety of amenities, including fitness centres, swimming pools, rooftop decks, and concierge services, have become increasingly common in apartment buildings. Most of the time, you won’t have to worry about extra costs to take advantage of the convenience of having such services so close to home, since they are typically included with the monthly rent.


Renting as a retiree opens the door to communities with on-site wardens, who may provide assistance to those who need it. Those who have health issues or mobility issues benefit greatly from these senior apartment buildings. When an elderly family member lives alone on their own property, a warden can give the family much-needed peace of mind.

Retirees Rent - Field

Retirement renting and its drawbacks

Money Required for Rent

While not having a mortgage payment to make every month is a huge weight off your shoulders, rent payments still need to be made, and they may not come cheaply either. Rental prices have risen dramatically in recent years, and there is nothing preventing your landlord from increasing your payment at any point during your lease.

Less security

Flexibility while renting during retirement allows you to have more control over your living situation, but it can also raise your sense of uneasiness. Since you do not legally own the property, you may be required to leave at the conclusion of your lease. Considering the prevalence of short-hold leases, this might force you to relocate more frequently than you’d want, an inconvenience that could soon wear you down in your golden years.

Issues with pets

While some landlords are becoming more accepting of renters with dogs, many others still frown upon them. This may not be a problem for some people, but it might be a real turnoff for others. If you’ve been an animal lover your whole life and have always had pets, chances are you want to keep doing so once you retire. Pets are very much a part of the family, as any dog owner will tell you.

Wasted money

Most obviously, the money you pay every month toward your rent isn’t invested in your future self. This is true regardless of your stage of life. Now, this may be less of a problem for retirees than it is for a twenty-something, but it’s still something to think about when assessing the advantages and disadvantages of renting in retirement. This may be of particular concern to you if you are thinking about leaving a sizable inheritance for your children.

If you’re close to retirement, is it worth looking into a rental?

As you will probably guess, the question of whether retirees should remain homeowners or opt for renting poses more questions than it answers. Nevertheless, giving it considerable thought is undoubtedly worthwhile. For some, it will be a very good option that suits their needs and expectations. For others, the drawbacks will be the overriding factor and deter them from choosing this route.

It’s important to do your own research, since what works for one retiree can discourage another. Think about the aforementioned benefits and drawbacks, but also about your own individual circumstances. Some of it will come down to your personality and outlook on life. Are you the adventurous type looking for new ground to tread? Or do you prefer stability and familiarity?


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