Friends’ research found that UK pensioners spend £23bn on rent every year and need an annual income of £11,491 to cover rent, utilities, ground rent and service charges.
In comparison the average homeowner needs only £3,020 each year to maintain their property.
Friends Provident head of pensions marketing Jeremy Ward says renting can be a difficult cycle to break out of.
He says: “Renting during retirement creates further difficulties and means that renters need to be more prepared and have a much larger annual income in retirement to keep a roof over their heads. In turn this means that renters need to be aware of the extra income required and make provisions for this in their pension planning.”