According to Prudential, 42 per cent of retired renters are former property owners.
Some 40 per cent of these people sold up to pay off debts, 19 per cent needed to funds to cover the cost of divorce and nine per cent needed to boost retirement income.
The remaining 58 per cent of people said they had never owned a home and did not expect to do so in the foreseeable future.
The average rent paid by retirees was £423 per month but this was two-thirds more than the average retirees mortgage repayments which was £257 per month.
This means rent would account for almost a third of a retiree's annual retirement income. According to Prudential research, the average retirement income is £15,300.
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Stan Russell, retirement expert at Prudential, said: "Renting in retirement can make financial sense and accessing property wealth to boost retirement income is a genuine solution for many. Our research shows that many retired renters are perfectly happy with this arrangement.
"However, retirees should be aware of the extra financial burden they are taking on if they choose to sell up and rent.
"The fact that some retirees say they are being forced to sell up purely by the need to pay off debts is concerning and suggests they are not receiving professional advice." 

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