More than half of people in the UK plan to live in retirement, renting out your property

More than half of working people in the UK who are over the age of 50 plan to use their property in the UK as a Supplement to the pension.

About 75% of this age group already have property in ownership, and the majority of homeowners over 65 living in their house for about 25 years.

The average cost of residential property in which people live over the age of 50, – £258000.

The desire to use their homes as an additional source of income arose because of significantly increased rents from renting residential property to rent and interest rates on Bank deposits – on the contrary, decreased.

Many homeowners lived in their home for many years, every year invested in improving your home and at your own comfort. According to rough estimates, these investments amount to approximately £30000. By making such investments, people don’t want to move out of his home, but ready to get rental income, because retirement savings are small enough.

In the study, a survey was conducted where the question was asked about the reasons for people’s desire to give their property for rent. About 53% of respondents said that they would like to obtain additional boost to pensions, 17% would like to have additional funds to cover their treatment costs, and 13% want to help their children or grandchildren to bear the financial costs, such as training, 10% want to invest in improving their homes and 8% want to buy any attribute of luxury, such as a sports car.

The study showed that the difficult economic situation will also affect the plans of people after retirement age. Only 13% of people are still willing to retire. 26% will continue to work due to the difficult financial situation, and 13% do not worry about their financial future at the time of retirement.

Despite the economic instability, most people believe that residential property will be safe and will only increase in price. Moreover, the majority of people recommend their children invest in property as a protective mechanism against economic shocks.

® Alice Morgan 27.09.2013