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Renters described as having “a pension problem”

Renters in both the private and social housing sectors have been described as having “a pension problem” by a financial analyst.

Helen Morrissey, head of retirement at business consultancy Hargreaves Lansdown, says only 19 per cent of renters are on track for a moderate retirement compared to 54 per cent of those paying a mortgage.

The term ‘moderate retirement’ is defined by the Pension and Lifetime Savings Association’s Retirement Income Standards.


Morrissey says: “Renters have a pension problem and lag way behind those paying a mortgage when it comes to pension planning. It remains the case regardless of generation – only just over a quarter of Generation Z households who rent are on track for a moderate retirement compared to well over half of those with a mortgage. 

“The picture gets grimmer as you get older with just under 17 per cent of Generation X households who rent on track with their retirement planning.

“Soaring house prices mean people are getting on the housing ladder later, and in many cases not at all. Those able to get mortgages often get them at much longer terms than the standard 25 years and these trends have long-term impacts across financial planning. 

“This means people are increasingly going into retirement without having paid off their mortgage or facing the prospect of having to rent for the rest of their lives. These housing costs can add thousands of pounds to someone’s annual budget and mean they have to save far more for retirement than those who have been able to repay their mortgage.

“Younger generations such as Generation Z and Millennials still have time to catch up with their retirement planning but those getting closer to retirement may find they need to make tough choices around working for longer to get back on track.”

Hargreaves Lansdown uses data from a regular savings and financial resilience measure which it applies to different demographics. 

It is structured around the five pillars of financial behaviour that Hargreaves Lansdown considers fundamental for households to balance current and future demands, while guarding against risks. These are: controlling your debts, protecting your family, saving for a rainy day, planning for later life and investing to make more of your money.

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  • icon

    And the Pope is Catholic ⛪️ , this is all so obvious. ……. And the solution 🤔……thought not 🆘🆘


    Solution- well that’s got to be - after they have thought about it over Waitrose Bikkies to some how a Clobber the Private Landlord. As it’s his/ her fault. Freeze rent right to buy the prop. To name a couple of ones governments decided. In some areas.

  • icon

    A rather pointless advertorial again! All so obvious and a waste of my time reading it.

  • icon

    I don't know if my tenants are typical but the younger ones are mainly renting in HMOs because it is so much cheaper than buying and enables to have both lifestyle and save a deposit for when they decide to buy. I'm pretty sure the majority of them are well on target in every financial measure.
    The older ones have made expensive lifestyle choices such as alcohol or multiple divorces.

  • George Dawes

    Not my problem

    Stop wasting money on sky tv etc and get your priorities right

  • icon

    It's up to everyone to make provision throughout their working lives for their old age, those that don't, no sympathy why would I care.

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    Some Landlords have a pension problem too... My portfolio was supposed to be my pension... Before I got shafted by the government.... Hey ho.....

  • Sarah Fox-Moore

    Talk about stating the obvious!
    The ideal and historic norm: A home owner pays off their mortgage so has no housing costs in retirement and probably has a pension or other provision.
    But renters will have continued housing costs into retirement. With or without a pension provision this will equal an impoverished retirement.
    And the disastrous "interest only" mortgages of decades past used in private residences, favoured by the "live for today" types is coming home to roost.

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    I don’t pretend to know how any of this works but I knew 2 long standing friends some years back both had their houses paid off at Retirement.
    One worked infactories all his life and had made every contribution, the other was self employed trades man, nothing was regular or straight everything a mess no regular contributions or at all.
    However they both retired the same week and the debate started. The self employed man ended up with a pound a week more than the man with full contributions because of other things he could claim that wasn’t available to the man with full contributions.
    It’s a bit like people on housing benefit often end up better off than the person working to pay for all.

  • icon

    Hargreaves landsdown seem to be referring to their own employee problems.


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