What happens when Generation Rent grows old?

As buying a home becomes increasingly difficult, renters face challenges in retirement

People could be looking at 80 per cent of their income going to rent in retirement. File photograph: Getty Images

People could be looking at 80 per cent of their income going to rent in retirement. File photograph: Getty Images

It used to be (relatively) simple. You got a job, scrimped and saved for a deposit, bought a home, then, when you retired, your cost of living plummeted as you had no mortgage or rental costs. Indeed for many, thanks to the benefits of earnings growth, your mortgage was paid off years before you retired. In conjunction with this, your employer offered an income in retirement which was not just fixed to a percentage of your final salary, but was also guaranteed.

Contrast this with today, when buying a home has become increasingly difficult, while private pensions face significant shortfalls.

The Irish Times
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