Pensioners Consider Lodgers For Cash

Home-owning pensioners fear they will have to sell their property or rent out a room to have enough money to fund their retirement, reveals a new report.

Nearly a quarter of pensioners know they will not have enough money to last their retirement and 20 per cent fear they will have to sell their homes to make ends meet, according to research from Prudential.

Around five per cent of UK pensioners would consider moving to a cheaper area to make some cash, four per cent have thought about re-settling on foreign shores and 17 per cent said they would consider staying put but using a spare room to take on a lodger.

"As more pensioners realise that they might outlive their provisions in retirement, some feel compelled into some pretty drastic measures," said Ali Crossley from Prudential UK.

Ms Crossley said although taking on a lodger for the first time is not ideal for the over-65s, if they do want to rent out a room there are important issues they need to consider.

"You need to get permission from different people depending on whether you are a freeholder, leaseholder or tenant. If you have a mortgage, you need to get permission from your lender.

"Renting out a room may also affect contents insurance, so you need to tell your insurer. And if the income from letting a room exceeds a certain amount the landlord may also be liable to pay income tax."