Retired renters face £43bn shortfall - Scottish Widows

Must save £525 more to cover costs

Hannah Godfrey
clock • 2 min read

Renters planning to retire in 15 years' time need to save an additional £525 every month into their pension to cover increasing housing costs, according to research calculated on behalf Scottish Widows.

The findings, which were calculated by Development Economics, predicted how the cost of rising rents throughout the next 15 years will affect pensions income. It found one in eight retirees - equating to more than a million people - will be living in rental accommodation in 15 years, treble the current number. It predicted more than two-fifths (42%) of the average retirement income will be spent on rent in 2032, so the average renter planning to retire in 15 years' time needs to save an additional £525 every month into their pension - £6,300 a year - on top of current pension contribu...

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