Older renters could face over £260,000 in housing costs during their retirement, according to new analysis by Suffolk Building Society.

The society suggested a “significant financial burden” is being faced by individuals who continue to rent in the private sector throughout retirement.

Although the state pension age is 67, Suffolk’s analysis showed the average UK retirement age is 64. With life expectancy stretching to around 16 years beyond that, the group said the financial impact is “stark”.

At current average rents of £1,360 a month, a typical retiree faces £261,120 in rental costs – a figure that rises to £434,880 in London.

While a retired person may no longer need an average-sized property, downsizing into a smaller rental property might also only offer limited financial relief. The average monthly rent for a one-bedroom property stands at £1,103, amounting to £211,776 over a standard retirement period.

“These rental costs are particularly striking when you consider most retirees have a reduced income in retirement,” said head of Intermediaries at Suffolk Building Society, Charlotte Grimshaw.

“It’s a real concern to think that a large share of their pension income could be consumed by rent. Renting has a clear role to play at various stages of life, but given these figures, some may want to explore alternative options.”

Grimshaw added: “There’s understandably a huge focus on first time buyers right now, but given the substantial rental costs retirees may face, it is equally important for this underserved group to be helped.”

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