"grandlords" on the up as pensioners use property for funds

Indeed, pensioner couples need £12,000 a year to fully participate in UK society, according to the Joseph Rowntree Foundation. As a result, the 'pension time bomb' is ticking ever louder despite individuals saving more; as the cost of buying a retirement income has gone up, many in the UK are set to fall short of the £231 weekly minimum target.

In fact, according to the National Association of Pension Funds (NAPF), 48% of all workers are planning to work beyond the state pension age because they simply cannot afford to retire. I

Danny Silver, Managing Partner of The Villages Group, active living resort for 50s+ in France, comments,

"Long gone are the days of final salary schemes and relying on a decent state pension once you hit retirement. Older people who've worked hard all their lives and want to retain a decent standard of living must find the extra funds themselves but with living costs rising faster than salaries not to mention falling annuity rates, this is easier said than done.

"For 20% of people (ONS) property investment is the key and we are seeing increasing numbers of retiree landlords or 'Grandlords' looking to take advantage of the UK rental market and boost their income."

Indeed, Saga’s report also reveals an increase in female pensioners renting out property, with a growth of 12% in 2012 and 43% since 2009.

One trend which Danny and his team at The Villages is seeing from these retiree landlords is that they are using their buy to let income to fund a cheaper life abroad. France in particular, a short hop across the Channel, is proving a popular choice as it's well known for its high quality of life, lower living costs not to mention rich culture, gastronomy and stunning landscapes.