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Only 18% of renters are on track for a moderate retirement

Only 18% of renters are on track for a moderate retirement compared to 55% of mortgagees and 51% of outright owners, research from Hargreaves Lansdown has revealed.

The research, Hargreaves Lansdown Savings & Resilience Barometer for January 2024, showed that renters are less financially resilient than recent remortgagers.

Additionally, the barometer reported that 43% of renters have emergency savings, compared to 71% of mortgagees and 87% of those who own outright.

Hargreaves Lansdown head of personal finance, Sarah Coles, said: “Renting ruins your financial resilience even more than having to remortgage at a time of sky-high interest rates. Life was already tough enough for tenants, but with average rents up around 10% in the past year, millions are having the life squeezed out of their finances altogether.”

The barometer also found the average income of renters was £31,617 per household, compared to £49,279 for outright owners and £57,818 for those with a mortgage.

Coles spoke on the impact of this, stating it was taking a “massive toll” on the short-term financial resilience of renters. She said renters have around £193 left at the end of the month, and they save just 4% of their income. This is compared to those with mortgages who save 5% and have £353 left at the end of the month.

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