Older renters spend 27% household income on rent 

In 2020-21, social renters aged 65 and over paid an average of 27% household income on rent – including housing support. Excluding housing support, the average was 34%.

Older private renting households spent 38% of household income on rent including housing support. Excluding this support, it was 48%.

Older mortgagors paid an average of 31% of their household income on their mortgage.

More than half of older households lived in homes with an Energy Efficiency Rating of D or below. 

Less than one in 10 older households had moved home in the past three years, and just three percent planned to move home within the next 6 months.

Helen Morrissey, senior pensions and retirement analyst at Hargreaves Lansdown, said: “The days of retiring mortgage-free are over for many with a quarter of older households still having to pay either a mortgage or rent post the age of 65. 

“Such costs can be sizeable and can add a huge extra chunk to any money you need to put away for your retirement, especially for those who continue to rent.

“Pensioners facing a shortfall in retirement income often talk about downsizing to a smaller property as a way of freeing up some extra cash but, while it may seem a good idea a few years down the line, when it comes to it many older people cannot bear the thought of leaving a home they may have brought up family in or have a close friendship network nearby. 

“The issue could become more acute as the cost-of-living crisis continues to bite and the price of essentials such as food and utilities continues to sky-rocket. 

“Older households tend to spend a larger proportion of their income on these items so are particularly badly affected.”