Non-homeowners currently in their 50s face having to find huge amounts of money to pay ever-escalating rentsScottish Widows is the sort of unassuming pensions company that rarely likes to publicly criticise government policy. But an analysis it published this week is a stark warning approximately the ticking time bomb that will explode in 10 to 20 years’ time. And it’s not pension incomes that are the worry - it’s the fact that so many of tomorrow’s pensioners who never got on to the property ladder in the 2000s and 2010s will have to find huge amounts of money to pay ever-escalating rents to private landlords.
Scottish Widows skirts around the issue by suggesting that non-homeowners currently in their 50s should start saving an additional £6000 a year now to be able to afford their rent in retirement. As if people on low incomes are going to find that sort of money. The reason they are renting is that they were never able to find the savings for a deposit on a house in the first dwelling, or didn’t earn enough to qualify for a mortgage.
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Source: guardian.co.uk