Can only afford to rent

Itsme_3

I have been reading the threads on paying off your morgage early to make life easier in retirement. Which made me wonder what people who find their self in my position would do to cover their retirement.
My marriage is over (no children to worry about) I am now in my late forties and renting a flat with a friend (too keep the costs down) so I am comfortable with a better standard of living than I had when I was married (Large debts and a husband who would spend every penny we earned).
I have a nice amount in the bank and have no debts.
I am working full time but can not get a mortgage on my own I don't want to tie my finances up with anyone else again.
So my question is how can someone like me try to make their retirment easier.
If I lose my job I have savings to fall back on but I'm aware that once touched they will disappear quickley if I'm not careful.
When you have a mortgage hopefully it will be paid by retirement but is there any advice out there for us renters.
Too much money in the bank for council or housing assosiation to help but not enough to buy.
Any advice anyone?
By the time I retire rents could be out of my price range I can see my savings going as I try to cover the rent in my old age.

Rikki

I'm sorry I can't help, but its a very interesting question. Looking forward to the answers.

peachespeaches

Not sure what the answer is in your case, but as I am in a similar position following divorce and remarriage, I sympathise. I am afraid that Im hoping my retirement problem will be solved by my mum and dad leaving their house to me. Is that a possibility for you?

I wonder if you can do something with your savings pension wise which might be better for you in the long run and might not exclude you from getting housing benefit in your old age?

Itsme_3

Only my Mum left and she has a few children any thing she leaves (If any) won't be enough to help me.
I'd rather she enjoyed it her self its her money not mine.

pinkshoes

Ideally you'd invest in the stock market, but if you're not wanting the stress of the risk element, I'd look into investing in a private pension, bearing in mind that the state pension hardly even covers most rent!!

My 2 grandparents - one funds their retirement through private pension and their owned property which they can downsize eventually and spend the equity on travelling etc..., the other has no savings or property, and now lives on very little in a tiny rented (grotty!) house, and is living evidence that even the current state pension is hard to live on!

You can't rely on someone leaving you property, as if they become ill and require state care, they'll be forced to sell their house to pay for their medical treatment, which won't leave alot for someone with a terminal illness!!

carolt

Don't worry, Itsme, prices are on their way down and hopefully, within a few years, you should be able to buy a nice place for a lot less than current prices..

Failing that, retire abroad, which a lot of people do. Even if, by some miracle (catastrophe?) house prices here remained high, they are already falling in places like Spain and the US. My parents-in-law have retired to Spain and find retirement MUCH cheaper there - you can have an excellent quality of life for a fraction of the cost of here. Even if you didn't want to buy there, you can rent much more cheaply too. Certainly, if house prices didn't alter here, it would be very tempting....

beingjdc

What I'd say you need to look at is the age at which you plan to retire, the amount you expect to have in the bank if you can keep working until then, and then where you can invest that money to fund a retirement. Can you manage up to a certain point and then buy an annuity?

Other good ways of paying for your retirement include working in a shop two days a week (lots of people did this in Comet when I worked there. Ten hours a week nearly doubles the basic state pension), or getting interested in politics and getting on the council (6k a year or so in much of the country, though it's surprisingly hard work!)

Personally I anticipate retiring at 65 or thereabouts. I hope to have funded my retirement by then, and do intend to buy a house at some point in the coming dip - but if not I guess (not wishing to tempt fate but they would be 98 by then) I am likely to have inherited a reasonable sum between now and then.

If you're still renting, look into what additional benefits you might get on top of pension and what traps you need to avoid falling into to disqualify yourself.