Increasing numbers of older Australians face a harder time paying the bills when they retire because they’ll still be paying off a mortgage or renting a home.
People over 65 who still have a mortgage or are renting are projected to double in number by 2031. The trend is likely to hit government budgets and leave more retirees in poverty.
Most retirees are financially secure. Many earn more than they did while working, the Grattan Institute finds.
Compelling Australians to put even more into super runs the risk of giving them a better standard of living in retirement than they had while working.
Bill Shorten confirmed the plan to scrap cash payments for excess franking credits.
Labor's plan to axe franking credit refunds has reignited debate over the income and wealth of older Australians.
The incidence of poverty among people over 65 is decreasing in part because of increased labour force participation.
Col Ford and Natasha de Vere/Flickr
There has been a substantial improvement compared to 15 years ago, when the incidence of poverty among the elderly was 32.4%.
Add up all the neglected costs of downsizing and retirees have good reason to be wary of making the move.
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Retirees are often urged to downsize to free up suburban properties for the next generation and for higher-density development. What's being ignored is the costs of moving into a unit or apartment.
Retirement village contracts are too complex for even some financial advisers.
AAP/ Paul Miller
While retirement villages aren't regulated like an insurance company, their contracts are essentially insurance policies. This puts the risk on retirees.
The proportion of renters is now roughly equal to the numbers of outright home owners.
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