Renting 'an expensive business' for pensioners

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Renting a property can put a major drain on a pensioner's retirement income, according to new research.

The study by Friends Provident found that people over 65 need an approximate annual income of £11,491 to cover rent, utilities and service charges, compared to homeowners who only need £3,020.

According to the firm, the figure has been calculated as the average person in the UK was bought their home outright by 48, meaning they have no mortgage to pay during retirement.

Jeremy Ward, head of pensions marketing at Friends Provident, said: "Renting a property can often be a difficult cycle to break out of due to the initial money and deposit needed to purchase a house.

"Renting during retirement creates further difficulties and means that renters need to be more prepared and have a much larger annual income in retirement to keep a roof over their heads."

Previous research by Friends Provident many people in the UK are planning to live on a budget to curb their concerns over the effects of the credit crunch.

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