Housing affordability VS retirement affordability – which is the greater evil?

Housing affordability has been the hot topic for a while now and there’s no sign of this interest cooling off any time soon, especially with the May Federal Budget drawing ever closer.

Pauline Hanson and a number of Federal backbenchers have been lobbying the government to allow young Australians to access their superannuation in order to give them a better shot at buying their first home and thereby easing the affordability crisis.

While this may seem like a plausible solution on the surface, former Chief Operating Officer of the Property Council of Australia, Ross Elliott says it is not good policy and “reeks of short term reactive opportunism.”

Mr Elliott believes that if the government moves ahead with this plan, we will face an even bigger problem than housing affordability in the future – an inability to afford retirement.

The facts are eye opening.

According to a 2013 OECD report:

  • Australian’s aged over 65 have the second worst seniors poverty in the world (behind Korea).
  • One in four Australian retirees receives the full pension and a further 25% receive a part pension.
  • 2/3 earn less than $400 a week in total.
  • About 25% are still paying off a mortgage or renting.
  • About 65% of Australians over 65 have no superannuation at all.
  • The average superannuation balance for someone aged 70 to 74 is $102,000.
  • Australians aged over 65 are now the fastest growing age group.
  • By 2033, one in five Australian will be over 65.

While the above picture should improve as more people reach retirement with a lifetime of contributions behind them (compulsory super only started in the early 1990s), the facts are nonetheless very sobering.

To read the full article click here.


Post by ShelMarkblog 08 Apr 2017 0