Renting in retirement: how much do you need in your pension pot?

As many as 3.6 million households could be renting in retirement by 2041, research suggests. How much do you need to save?

Grey-haired woman at home looking at laptop
(Image credit: 10'000 Hours via Getty Images)

Renting in retirement is likely to become more common over the next two decades, as high house prices and a more challenging mortgage backdrop create barriers to homeownership.  

Research from the Pensions Policy Institute and Aviva reveals as many as one in six retired households could be private renters 20 years from now. That’s a significant increase compared to today, when around one in 20 retired households rent.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free
https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up
Katie Williams
Staff Writer

Katie has a background in investment writing and is interested in everything to do with personal finance, politics, and investing. She enjoys translating complex topics into easy-to-understand stories to help people make the most of their money.

Katie believes investing shouldn’t be complicated, and that demystifying it can help normal people improve their lives.

Before joining the MoneyWeek team, Katie worked as an investment writer at Invesco, a global asset management firm. She joined the company as a graduate in 2019. While there, she wrote about the global economy, bond markets, alternative investments and UK equities.

Katie loves writing and studied English at the University of Cambridge. Outside of work, she enjoys going to the theatre, reading novels, travelling and trying new restaurants with friends.