People expecting to rent during retirement could need an additional £398,000 in savings compared to those with no housing costs, analysis from Standard Life has revealed.
The analysis, which examined figures from the Office for National Statistics, suggested this represents an increase of £7,000 when compared to homeowning counterparts.
Standard Life suggested that while the real cost of living will vary due to factors including inflation and location, there is long-term financial implications entering retirement as a tenant.
Standard Life managing director, Claire Altman, said: “While saving more for retirement is increasingly essential, regardless of whether someone plans to rent or own, the reality is that for many, home ownership may no longer be feasible.
“For those who do expect to be renting in retirement, it will be important to start planning how they will meet these housing costs, especially if rent prices continue to increase, as seen in recent years.
“When planning for retirement, it’s crucial to consider how essential expenses like housing will be covered.
“If being mortgage-free is not an option, products like annuities, which offer a guaranteed income for life, may help ensure ongoing costs such as rent and essential bills are met.”
As a result home ownership remains a key goal, with 40 per cent of people planning to buy a property in the future.
However, rising house prices continues to pose a challenge with ONS data showing that average UK house prices rose 6.4 per cent over the past year, reaching £271,000 in March 2025.
Standard Life pointed out that there are “clear” regional disparities when it comes to renting in retirement.
The southern regions, particularly London and the South East, consistently command the highest rent standing at £55,700 and £34,000 over the next 20 years respectively.
In contrast, areas such as the North East, Wales, and Northern Ireland offer less expensive rental options.
tom.dunstan@ft.com
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