Recent headlines have highlighted growing concerns that increasing numbers of people are reaching retirement while still renting or paying a mortgage. Traditional retirement plans have been associated with owning a mortgage-free home, but this is becoming less common as the number of households aged 55-64 who are privately renting has risen by 82% since 2008. If this affects you or one of your family, have you factored in how to pay for housing costs throughout your retirement?
Why housing costs matter in retirement
Housing is often one of the largest household expenses. While many retirees can expect certain costs to reduce once they stop working, housing costs can remain significant. Renters will still face monthly ongoing payments and those with a mortgage still have to factor in repayments. Rising rents and property related costs could place additional pressure on your retirement income. It’s worth considering if your income stopped tomorrow, could your retirement income cover your housing costs?
Retirement today looks very different from previous generations
Some people may have delayed or decided against home ownership, whilst others may have experienced life events such as divorce, career breaks or caring responsibilities that have affected their long-term finances.
As you prepare for your retirement consider asking yourself:
- Will I be renting or paying off a mortgage when I retire?
- Have I accounted for future rent or mortgage increases?
- Have I calculated how much income I need each month and will this change later in retirement?
- Do my pension plans support both my lifestyle goals and housing requirements, both now and in the future?
How Origen can help
Planning ahead for your retirement can help you identify potential issues before they become a problem. We’ll help you review your retirement income needs, assess your pension contributions and help you to understand any potential shortfalls in your income. It could mean that you need to explore options such as working longer, increasing your savings, or adjusting other aspects of your retirement plans and goals. Either way we can help you put the right plan together.
While headlines may focus on the challenges facing future retirees, the good news is that planning ahead can make a significant difference. By understanding your likely housing costs and building them into your retirement plans today, you can take positive steps towards a more comfortable financial future.
If you’d like to understand how your housing costs could affect your retirement plans, get in touch and your adviser will help you to build a clear picture of your future.
CA13707 Exp 09/2027
