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Pensioners who rent could face increased poverty
British pensioners who rent could face increased poverty, industry research has suggested.
Statistics from Friends Provident, have shown that those who do not buy a house during their lifetime are £133,117 worse off than home-owners.
Jeremy Ward, head of pensions marketing at Friends Provident, said that renting a property can be a difficult cycle to break out of due to the initial cost of and deposit needed to buy a house.
He added: "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."
"In turn this means that renters need to be aware of the extra income required and make provisions for this in their pension planning," he concluded.
The average Briton owns their home by the age of 48, which means that they have no mortgage to pay during their retirement.
During this time the average homeowner needs just £3,020 a year to maintain their property.
Meanwhile, those who remain in rented accommodation during retirement will need £11,491 per annum to cover their rent, utility bills and other charges.
Created on 13/06/2008 10:16:15
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