Elderly renters

Royal London study warns pension system assumptions increasingly disconnected from reality The number of people over 65 living in rented accommodation has doubled over the past decade, threatening to push tens of thousands of elderly Irish residents into poverty as housing costs consume pension income, according to a Royal London Ireland study. The report highlights how Ireland's housing crisis is fundamentally reshaping retirement security, with pension systems designed on the now-outdated assumption that housing costs decrease after retirement. Census figures show that 8,500 people over 65 were renting in 2011, rising to 17,000 by 2022—a doubling that occurred despite Ireland's overall population growing just 12% during the same period. The surge accelerated from 2016 onward. Simultaneously, the number of renters under 35 declined between 2011 and 2022 as high rents forced many to emigrate or return to parental homes. This created a significant increase in renters over 35, with many now unlikely to ever achieve homeownership. The average age of a home buyer in Ireland is 39 and rising steadily. The study warns that those over 40 in the private rental market struggle to find affordable housing and face minimal prospects of purchasing property. By 2035, Ireland's homeownership rate is forecast to approach 60%, meaning nearly half the population will rent—a dramatic decline from over 80% at the century's start. The Pensions Council reported last year that someone wanting to live on basic necessities after retirement needs at least €1,600 monthly, assuming €600 for housing costs including utilities. However, virtually no renters pay such low amounts, particularly in urban areas where elderly people often need to remain for healthcare access and social connections. The discrepancy suggests renters over 65 face high poverty risk. ESRI research found that 14% of over-65s lived in poverty after housing costs in 2022, but warned this could more than double to 31% if homeownership rates continue declining. As Ireland's population ages, more pensioners will be pushed into housing poverty, with increased house-sharing among over-65s becoming necessary for affordability. The ESRI proposes widespread affordable rental housing—units priced 25% below market rates—to address the crisis. While Ireland has built affordable rental housing in recent years, the scale remains inadequate. Since 2021, 4,500 such homes became available, with 5,000 more planned by end-2027—far below demand. The affordable housing program doesn't target over-65s specifically, with applicants of any age competing for units. Each property receives hundreds of applications, potentially excluding seniors. The ESRI recommended giving older tenants special consideration to help families build retirement resources. The findings reveal a looming social crisis where the generation that built modern Ireland faces insecure, unaffordable housing in old age. Unlike younger renters who might eventually buy property, elderly renters have limited time and reduced income to change circumstances. The situation represents policy failure across decades—insufficient social housing construction, inadequate rent controls, over-reliance on private markets, and failure to anticipate demographic shifts combining to create systematic vulnerability among elderly renters. The crisis particularly affects those who worked in lower-wage sectors throughout their lives, never accumulated deposits for home purchases, or experienced financial setbacks through divorce, illness, or unemployment that prevented property ownership. Solutions require substantial scaling of affordable rental housing specifically allocated to elderly applicants, stronger rent controls protecting long-term tenants, and potentially direct housing supports ensuring pensioners aren't forced to choose between rent and other necessities. The doubling of elderly renters in just over a decade suggests the problem will intensify dramatically without major policy intervention, potentially creating widespread pensioner homelessness and poverty within years.

Elderly renters double in decade as Ireland’s housing crisis threatens pensioner poverty

Royal London study warns pension system assumptions increasingly disconnected from reality The number of people over 65 living in rented accommodation has doubled over the past decade, threatening to push tens of thousands of elderly Irish residents into poverty as housing costs consume pension income, according to a Royal London Ireland study. The report highlights … Read more