Apr 14 2008
Renting a property during retirement requires a considerably larger annual income than owning a house, a new report has aimed to highlight.
Figures from Friends Provident have shown that renting in retirement requires an annual income of close to £11,500, while living in your own home means spending just over £3,000 over a 12-month period.
The average age at which a UK consumer owns their own home is 48 and the firm behind the research is keen to see people who enter retirement without any property assets prepare for the extra costs they are likely to face.
"Renters need to be more prepared and have a much larger annual income in retirement to keep a roof over their heads," said Jeremy Ward, head of pensions marketing at Friends Provident.
"In turn this means that renters need to be aware of the extra income required and make provisions for this in their pension planning."
Many thousands of Britons remain in employment after they reach the national pension age in order to supplement their finances, a recent report from the Department of Work and Pensions made clear.
