Almost a fifth of low-income workers aged 55+ can’t afford to retire

For many people, the run-up to retirement is a time to slow down, make plans and look forward to a well-earned rest. But for nearly one in five low-income workers aged 55 and over, retirement isn’t even an option - not because they don’t want to stop working, but because they simply can’t afford to.

A new study by homelessness charity Crisis has revealed that high rents and a lack of social housing are forcing thousands of older people to delay retirement, or in some cases, return to work after retiring, just to keep a roof over their heads.

'I don’t ever see myself retiring'

Among older people on low incomes, nearly one in five (17%) said they can’t afford to retire due to housing costs, and almost one in ten (8%) of those already retired said they expect to have to unretire just to get by.

One participant in the study said they “did not ever see themselves retiring” because rent and bills are simply too high to manage without a wage coming in.

It’s a stark picture, and one that’s becoming more common. In fact, homelessness among people aged 55+ in England has increased by over 50% in the past five years.

The cause? A combination of skyrocketing rents, stagnant housing benefit and a severe shortage of social housing.

A housing crisis decades in the making

According to the thinktank Common Wealth, the UK’s chronic shortage of affordable homes can be traced back to the Right to Buy scheme introduced in the 1980s.

While the policy helped millions of tenants buy their council homes, most of those homes were never replaced, and many are now privately rented at full market prices - one in six private renters now lives in a former council property.

The result? Councils are paying over £20bn a year in housing benefit to private landlords, while people on low incomes are stuck paying unaffordable rents, or living in overcrowded or temporary accommodation.

And it’s older people who are now being pulled into this growing crisis. Nearly half (47%) of low-income over-55s surveyed by Crisis said they would have nowhere to go if they lost their home. One in five fears becoming homeless in retirement.

The human cost

The financial pressure is taking a serious toll.

• 66% of older renters said they were cutting back on using heating, electricity or hot water.
• 28% reported feeling more isolated and lonely due to changes made to afford rent.
• 15% said their housing situation made it harder to care for loved ones.
• Nearly 10% said they expect to face homelessness within the next year.

Matt Downie, chief executive of Crisis, summed it up:

“No one should be forced to endure the hardship and trauma of homelessness, and in later life the consequences can be even more devastating. We’ve heard harrowing accounts - including someone who had to crawl over to a lamppost to be able to pull themselves up after sleeping rough in the cold and someone who was placed in unsuitable temporary accommodation far away from their wife’s care home, making visiting her near impossible. These stories show the shameful reality of a housing and homelessness crisis that has been decades in the making, and we need change."

What needs to change?

While support services can offer a safety net, charities like Crisis argue that only bold, long-term action will fix the root of the problem.

That includes:

• building more social housing
• unfreezing housing benefit
• better support services and early intervention to prevent homelessness 

Worried about retirement?

If you're approaching retirement or are already retired and struggling financially, the first thing we’d advise is making sure you’re claiming all the financial support you’re entitled to. Some £23bn of benefits go unclaimed every year in the UK, according to Policy in Practice, with a third of eligible households missing out on pension credit – worth up to £4,000 a year.

And claiming pension credit also opens the door to other benefits, including:

• help with rent
• a council tax reduction
• energy bill support
• a free TV licence if you’re over 75 

Check you’re not missing out with our free benefits calculator. It’s quick and easy to use. Or if you prefer, give us a ring and we’ll run through it with you.

We can also talk you through the support that’s available if you’ve fallen behind with bills or debt repayments.