The quiet cost of later life
What lies beneath the surface of pensions and property when it comes to financial security in later life?
Planning or patching? How financially ready are older adults for what comes next?
It’s tempting to think that most people in their seventies and eighties have their financial house in order. This is, after all, a generation raised on thrift, more likely to have benefited from final salary pensions, and in many cases owns property outright.
But when you actually sit down and listen, a different picture emerges. Some feel in control. Others are quietly coping. Many are simply hoping things hold steady for a little while longer.
Boomer + beyond spoke to people from across the UK about how they’re navigating the financial realities of later life. The conversations were candid, often personal, and sometimes contradictory. One thing was clear. Financial preparedness is rarely straightforward.
Frugality as a form of resilience
The current economic climate has prompted real adjustments. Some participants spoke about rethinking their weekly shop, buying cheaper versions of the brands they used to prefer, or cutting back on non-essential expenses like meals out or short breaks.
“Instead of buying branded goods, you tend to go for the cheaper goods... instead of eating steak, you tend to go for braising steak.”
Others talked about selling larger homes, consolidating debt, or drawing on equity. Not out of choice, but necessity.
“I sold my large house… and moved to a smaller house. It’s been difficult to survive. I’ve now sort of turned a corner, but it has been a hard time.”
For many, these decisions are not part of a long-term strategy. They are short-term responses. Adaptive rather than planned. Financial resilience in this context looks like pragmatism. A quiet tightening of belts.
The myth of the master plan
While some participants had worked with financial advisers and mapped out their retirement income in detail, this was the exception, not the norm. Most people described a more reactive mindset. They would stay where they are, see how their health goes, and make decisions if and when things change.
“If something happened to me, I’d have to think about it then. But at the moment, everything is ticking along.”
This doesn’t mean people aren’t thinking about the future. But it does suggest that the kind of bold, future-facing planning imagined by many retirement operators may be misplaced. For this group, financial planning is often invisible, instinctive or shared only within families.
There’s also a cultural modesty at play. Many people grew up believing it was impolite to talk about money or to make a fuss. As one participant put it:
"You just get on with things."
Home is not just an asset
Housing remains a key part of the story. For some, owning their home provides a strong sense of security. For others, it’s a way to ensure something can be left behind.
Again and again, participants expressed a clear preference for ownership over renting in later life. It wasn’t just about control. It was also about capital. A rented model, many felt, would simply eat into their savings or inheritance.
“Renting, to me, is dead money. If I owned it, then at least I would have something to leave to my children when I die.”
This emotional attachment to legacy has a strong influence on financial decisions. For some, it even trumps convenience or quality of life. Staying put in a familiar home, even if it's harder to manage, can feel preferable to accessing retirement living options that might erode what they hope to pass on.
Paying now or paying later?
When the concept of a deferred management fee (DMF) was introduced in conversation, reactions were mixed. Some liked the idea of deferring costs until later. Others were sceptical or resistant, especially when they didn’t fully understand what the fee covered.
“I don’t want to pay either. Maybe a deferred management fee would be better.”
“To be honest with you, I must admit I don’t like the idea at all… it seems as though the management company are making money twice.”
The issue wasn’t the concept itself. It was the clarity. People want to know what they are paying for, when, and why. They want to feel confident that fees reflect actual value rather than vague overheads.
When communicated clearly, with transparency and sensitivity, the DMF model was seen by some as a helpful way to manage costs. But without that clarity, suspicion crept in. People worried about being caught out or leaving their children with a smaller estate than expected.
What this means for the sector
Independent Retirement Communities are not just offering a place to live. They are asking people to make one of the biggest financial and emotional decisions of their later life. Understanding the mindset behind those decisions is essential.
Here are three practical implications from the research:
1. Don’t assume financial readiness from property ownership.
A person’s home may be worth a lot, but they may still feel anxious about bills, cautious about spending, or reluctant to release equity. Treat wealth as something to explore, not something to presume.2. Communicate fees as part of a wider value exchange.
People want to know what they’re getting, who benefits, and how the offer compares to doing nothing. Make it tangible. Make it personal. And make it make sense.3. Speak to both the practical and the emotional.
For many, the idea of moving is about more than money. It’s about identity, security and what they leave behind. Position your offer in a way that respects these values, not just the numbers.
Final thought
Financially speaking, many older adults are walking a careful line. They are not living in crisis, but neither are they complacent. They are making it work. Sometimes just. Sometimes well. But always with an eye on what's next.
The more we listen, the more we learn that being ready for the future isn’t only about income or assets. It’s also about confidence, clarity, and trust. For those shaping the future of retirement living, this is the conversation that counts.
source: Boomer + beyond_Living well later_qualitative research study_2024