Keys to the future: how we can prevent a pensioner poverty surge
Our new reports projects an alarming surge in pensioner poverty and older renters if we don’t see urgent policy change. Head of Policy and Influencing, Morgan Vine explores the changes we need the next UK Government to implement.
Would you be surprised to learn that whether someone rents or owns their home has a massive impact on their likelihood of being in poverty in later life?
Maybe it sounds obvious, but new research we commissioned from academics at the UK Collaborative Centre for Housing Evidence (CaCHE) shows just how stark this connection is across the UK and looks to the horizon for what could be racing towards us.
At Independent Age our vision is of a country where no one faces financial hardship in later life. A key part of this is about ensuring everyone has a safe, affordable and secure home.
We know how important this is through the conversations we’ve had with older people across the UK. They shared what came to mind for them when they think of their home, telling us it is their “refuge”, “safe haven”, “everything”.
However, the evidence is clear that not everyone has an affordable home they feel secure in, especially private renters across the UK — a group at high risk of experiencing poverty in later life.
Over the last couple of years, we’ve been speaking to older private renters living on a low income to learn more about the challenges they face.
Peter, in his 70s, told us:
“I would love to stay here, but it’s becoming unaffordable and, well, it would change my life completely if I had to leave, because I love it there so much, but I do need lower rent.”
While Shelia, also in her 70s, shared:
“Always the thought in the back of your mind — especially with section 21 and everything — is that I could, one day, just be given notice. I have no security at all.”
Others have explained they’ve been forced to leave their communities in the hunt for somewhere with cheaper rent, or have been living in poor quality homes that have holes in the roof or mould on the walls.
While some people choose to privately rent in later life, most of the older private renters Independent Age engages with are in financial hardship with limited choices. Many people in this situation have been unable to do anything but rent from a private landlord all their lives. Others will have moved into renting after a significant life event such as a bereavement, a relationship breakdown or job loss.
Our Keys to the future report, based on this new research from CaCHE, shines a spotlight on what it could mean if more people in later life privately rent their home in the future.
Based on current trends, the research projects that the number of private renters in older age might treble by 2040. The knock-on effect of this — as many older private renters are likely to be financially insecure — could be that the number of people living in poverty in later life rises from the current 2 million to almost 4 million.
When I saw these numbers in black and white they really shocked me. And as is often the case, some groups will feel this reality more keenly, with older women and older people with long term conditions and disabilities hit particularly hard.
However, the good news is that this reality isn’t set in stone. We can all play our part to make sure it doesn’t come to fruition and that everyone can look forward to a later life filled with dignity, choice and purpose.
What can you do?
- Read the report and share it on social media. Here’s some text you could use if you want to:
There are already #TwoMillionTooMany older people living in poverty but new research from @independentage and @HousingEvidence shows that if trends continue, poverty in later life will surge.
Find out more about the research and how you can help: www.independentage.org/keys-to-future-report - Join our campaigner network to take action.
- Find out more about our Two Million Too Many campaign and how you can help raise these issues with your local political candidates.
If you’re past State Pension age and have money worries, Independent Age has free information and advice you can access. Call our free helpline on 0800 319 6789 or take a look a look at the advice and information on our website.
