Older renters could face over £260,000 in housing costs during retirement, new analysis from Suffolk Building Society found.
Suffolk BS highlighted that many older people rent because it suits their plans or is their only option, but the society said others with the means to buy are often unaware of current options.
At current average rents of £1,360 a month, a typical retiree would pay £261,120 in rent during retirement.
In London, this could rise to £434,880.
Downsizing to a one-bedroom property would still mean a cost of £211,776 over the same period.
Charlotte Grimshaw, head of intermediaries at Suffolk Building Society, said: “These rental costs are particularly striking when you consider most retirees have a reduced income in retirement.
“It’s a real concern to think that a large share of their pension income could be consumed by rent.
“Renting has a clear role to play at various stages of life, but given these figures, some may want to explore alternative options.”
The report noted that renting in retirement can bring challenges such as financial insecurity, lack of security of tenure, and limits on adapting homes for future mobility needs.
Grimshaw added: “There’s understandably a huge focus on first time buyers right now, but given the substantial rental costs retirees may face, it is equally important for this underserved group to be helped.
“Brokers are well placed to support these customers by combining products that recognise rental payment histories with criteria designed for older borrowers.
“Unlike many high-street banks, building societies often take a more flexible, individual approach – looking at each customer’s full circumstances rather than relying solely on rigid rules.”
She said: “Many older renters may have tried to buy a home in the past but found it out of reach.
“Our message is that the mortgage market has changed significantly in recent years, and it may be worth taking a fresh look.”
