Granny flat of the future will be part workplace, part home as pensioners struggle to make ends meet, says think tank
They say an Englishman's home is his castle - but that jealously-guarded privacy could become a thing of the past as the pensions crisis bites.
Experts are predicting that by 2020 the layout of the average pensioner's home could be transformed as the retired increasingly run cottage industries in their ground floors to supplement insufficient retirement incomes.
The granny flat of the future - dubbed the 'biz-res' - could routinely include office space in place of the front room or a nursery where the dining room used to be, according to a report being published today for Friends Life by the Future Foundation think tank.
Homes could accommodate an array of enterprises from online trading and business consultancies to crèches and tutoring.
It might also be commonplace for pensioners to rent out rooms to lodgers or even join in house shares to save costs, with two or more living communally.
The metamorphosis of the pensioner's home would come as Britons realised they did not have enough to live on, according to the study, "Pensions: Crisis and Reforms".
With record low numbers contributing to company pensions and the State Pension becoming increasingly inadequate in the face of rising living costs, many people in their seventies and beyond will continue to work in retirement.
Martin Palmer, head of corporate benefits marketing at Friends Life, said:
"If Britain fails to get a grip on the looming pensions crisis, the home could double-up as the workplace for many senior citizens. We will see the birth of the biz-res.
"If this happens, it won't be uncommon for front rooms to be dominated by desks with computers and phones or for business meetings to take place in people's dining rooms and conservatories."
Academics made the predictions after quizzing working people from across Britain about how they would be prepared to live in order to fund their retirement.
They found that today's workers - tomorrow's retired generation - are open to working in retirement and many of us envisage doing so from our own homes.
Some 89 per cent said they would be prepared to work part-time, run businesses, start trading online or live with others in retirement to supplement their incomes.
Nearly six in ten (59%) said they would consider selling "unneeded or little-used possessions online", while 34% said they would "run a small, one-person business from home". One in ten (10%) said they would consider running a nursery at home.
Asked to consider housing options, 14% of current workers said they would consider "moving in with other family members" in retirement and 12% said they would consider "moving in with my children".
A third (33%) said they would rent out a spare room to a lodger.
The report said: "The home office - either for independent online trading or for running a small or one-person business or for working part-time - could start to become a more common sight in the household of the older generation future."
The report's authors said the proposed eight per cent company pension contribution under the Government's auto enrolment scheme will be too low to ensure a secure financial retirement.
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