Why renting in a retirement community can be a financially savvy move.
Posted 30th October 2023
Can renting in retirement make you more financially secure?
The skyrocketing prices of consumer goods and utility bills are leaving many retirees on fixed incomes struggling to make ends meet. An Age UK cost of living report early this year found that millions of older people are borrowing money. Resorting to using credit cards, or not able to pay bills due to the cost-of-living crisis.
Our recent annual customer survey found that the cost of living was the biggest concern for almost a third (29%) of our residents about their retirement. This was followed by health and funding their retirement years.
Interestingly, the survey also highlighted that moving into their current home in a retirement development had made a real difference to their finances. Around a quarter said their finances were ‘much’ or ‘somewhat’ better.
Renting on a retirement development can help people’s finances in several ways. For those that own their home, selling up and renting a property can free up capital. Releasing money stuck in bricks and mortar which they can use to help fund their retirement. Our survey showed that 41% of residents (who were homeowners before moving into a retirement property) said they sold to have more money for living expenses in retirement.
Lower running costs
There are other financial benefits too that come from downsizing and renting in a retirement development. This includes no longer having to worry about the costs and upkeep of a home. Living somewhere smaller and more manageable is also cheaper to heat.
Downsizing from home ownership though or moving from renting in the private rental sector to a retirement community. Many of the apartments in the retirement developments we feature are affordable. They can often cheaper than other rentals in the area.
Location, location, location
The developments tend to be in desirable retirement locations. We have coastal resorts or the centre of towns close to all the amenities and transport links people need. Factor in that renting helps people budget as they know what expenses they have each month with no unexpected bills. It all adds up to being a viable financial choice for some.
But it is not just about finances. Life in a friendly retirement community can be sociable too. With communal spaces for residents to get together and enjoy activities and events. Many residents also organise outings to local attractions, pubs, and restaurants.
Assured Tenancies
Also, most rental apartments in retirement development come with assured ‘lifetime’ tenancies. This means people never need to move again providing they keep to the terms of their agreement. Our survey revealed that the security of an assured tenancy was the top reason those who had a property to sell before moving in decided to rent rather than buy.
There is also the safety of living in a development. With a 24-hour emergency alarm system in each apartment and an onsite manager on duty during the day, which for people that live alone this is especially reassuring.
To find out more about renting in retirement, and search our available properties take a tour of our site: www.myfutureliving.co.uk