Tuesday, August 09, 2011

Older people forced to sell homes to pay for retirement, says survey

A company in the property rental business (HomeLet) has published some data suggesting that more older people are being forced to sell their properties to free up capital, pay off debt and then to move into rental accommodation.

I am not going to go through the numbers because the research has no statistical significance. However, I know from personal experience of a couple of friends who have been forced into this situation.

HomeLet doesn’t know what the numbers are – nor do I – but there is no doubt that a lot of older people will be forced into this radical action because of their lack of preparation for retirement. A combination of having no financial buffer, debt and reduced equity in their property because of previous borrowing compounded by loss of income is a toxic combination.

This is very sad but does highlight the increasing number of poorer older people that will be around. If I ever did have any doubts about the accelerating decent into the ultra-fragmentation of the population into rich and poor then the last week has removed all doubts. Dick Stroud

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