Renting On A Pension: The Pros and Cons

Renting On A Pension: The Pros and Cons

In the UK as a whole, renting is becoming more popular. The UK rental market is growing because house prices keep going up, pay raises don’t go up, and people’s attitudes are changing toward renting. Even though this is the case, many of us still think that renting is something young people do, rather than renting on a pension.

Renting in retirement, on the other hand, is on the rise. While many renters of pensionable age would want to be homeowners if they could afford it, many are electing to rent in retirement with the luxury of choice. In today’s article, we’ll look at the benefits and drawbacks of doing so.

Renting On A Pension vs. Homeownership

When making a choice of this size, there are bound to be arguments for and against, and a lot of what you choose will depend on your own situation.

Still, there are some pros and cons of renting on a pension that are pretty much the same for everyone, and we’ll talk about those below.

Pros Of Renting In Retirement

No Mortgage: If you choose to rent on a pension, you will still have to pay rent, but you won’t be tied down by a mortgage. This gives you some freedom in your life. For example, you could move closer to your children and grandchildren, or you could try out areas you’ve always wanted to live in without much risk.

Release Equity: If you own a home and are getting close to retirement, you won’t be the only one who decides to sell it and rent instead of keeping it. Most of the time, released equity is used to add to pension funds. This gives retirees more freedom and the money they need to enjoy their retirement to the fullest.

Fewer Hassles: Ask any homeowner, and they’ll tell you that one of the worst things about owning a home is having to deal with unexpected maintenance issues. Leaking pipes roofs, broken boilers, and even less climactic problems like dealing with normal wear and tear can be annoying, expensive, and time-consuming. Who wants to have to deal with that when they’re old? If you decide to rent instead, your landlord will take care of these problems, which can be a very appealing idea.

Amenities: As the rental market grows, so does the competition between landlords and developers to get your business. This has led to a huge increase in the number of amenities in apartment complexes. Gyms, pools, rooftop verandas, and concierge services are becoming more and more popular. Most of the time, these extra features will be included in your rent, which means you can use them for free and they’ll be right outside your door.

Warden-Assisted: Renting in retirement gives people who need a little extra help the chance to move into a warden-assisted block or complex. People with health problems or trouble moving around will benefit most from these apartment buildings for older people. Having a warden on site can also give loved ones peace of mind, which may be missing if an elderly relative lives alone in a home they own.

Cons Of Renting On A Pension

Rental Fees: Not having a mortgage hanging over your head is a good thing, but you still have to pay rent, which can be expensive. In recent years, the cost of renting has gone up a lot, and there’s nothing stopping your landlord from raising your rent as your lease goes on.

Insecurity: Renting in retirement gives you more freedom with your living arrangements, but it also makes you feel less safe. Since you don’t own your home, you can be asked to leave when your lease is up. With shorthold tenancies being the norm, this could mean that you have to move more often than you’d like, which could get very old very fast.

Problems with Pets: Even though attitudes are changing, many landlords still don’t want their tenants to have pets. This won’t be a problem for some people, but for others it will be a deal-breaker. If you’ve always loved animals and had pets your whole life, chances are you’d like to keep doing that when you retire.

Dead Money: One of the most obvious “cons” of renting (at any age) is that the money you pay each month isn’t doing anything for you in the future. Now, this may be less of a worry for a retiree than it is for a twenty-something, but it’s still something to think about when weighing the pros and cons of renting on a pension.

Should You Rent In Retirement?

It shouldn’t come as a surprise to you that there is no one right answer when it comes to deciding whether to rent or buy a home in retirement. But thinking about it is a whole different thing, and it’s definitely something to think about.

What works for one retiree might not work for another, so you should do your own research. Read through the pros and cons listed above, but also think about your own reasons.

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