Good points. Ironically now you can get the government to stump up for a stake for purchasing a home, and then once you have the means (or get access to your super), buy out the government's stake. In a way it's handy that you can diversify your wealth, but it is a bit ridiculous people are forced to go through this system.
A truer comparison should be both as home owners or both renting. How can anyone provide a true comparison without this being fair. Not all pensioners own their home in fact I don’t know any.
I don’t feel that there should be any difference in the pension if you rent or own. If you pass the asset test you should get the full pension regardless of home ownership.
All renters should be entitled to rent assistance if they qualify.
It is true that many pensioners are not homeowners.
However, the vast majority are — over 60% of single pensioners and 83% of couple pensioners. The opposite is true for people aged under 35, where the majority are renters.
The average time to pay off a mortgage in Australia is between 10 and 30 years. Since Aussies usually buy their first homes in their 30s or 40s, they generally pay them off by their 50s and 60s, but it's becoming increasingly common for people to still have mortgage payments to make into retirement.29 Mar 2022
We will not own our home outright on retirement.
35+ aged persons will be in the same situation as us when reaching our age if they choose to commit to home ownership at the cost of giving up other luxuries as we did.
Yes. This is sort of the point. Max net wealth tends to occur right at the beginning of retirement. Yet due to low income/liquid wealth, the common narrative becomes that its particularly hard financially to be on a "fixed income" and you need to ultra-sensitive to policies that affect retirees or that they need tax breaks or whatever.
But transfers of wealth between cohorts is really really dangerous, especially when you end up with an inverted triangle, like many developed nations are today.
Good points. Ironically now you can get the government to stump up for a stake for purchasing a home, and then once you have the means (or get access to your super), buy out the government's stake. In a way it's handy that you can diversify your wealth, but it is a bit ridiculous people are forced to go through this system.
A truer comparison should be both as home owners or both renting. How can anyone provide a true comparison without this being fair. Not all pensioners own their home in fact I don’t know any.
Also, I agree that renting pensioners should get more support, including options for direct housing provision and more rent assistance.
I don’t feel that there should be any difference in the pension if you rent or own. If you pass the asset test you should get the full pension regardless of home ownership.
All renters should be entitled to rent assistance if they qualify.
It is true that many pensioners are not homeowners.
However, the vast majority are — over 60% of single pensioners and 83% of couple pensioners. The opposite is true for people aged under 35, where the majority are renters.
The average time to pay off a mortgage in Australia is between 10 and 30 years. Since Aussies usually buy their first homes in their 30s or 40s, they generally pay them off by their 50s and 60s, but it's becoming increasingly common for people to still have mortgage payments to make into retirement.29 Mar 2022
We will not own our home outright on retirement.
35+ aged persons will be in the same situation as us when reaching our age if they choose to commit to home ownership at the cost of giving up other luxuries as we did.
Yes. This is sort of the point. Max net wealth tends to occur right at the beginning of retirement. Yet due to low income/liquid wealth, the common narrative becomes that its particularly hard financially to be on a "fixed income" and you need to ultra-sensitive to policies that affect retirees or that they need tax breaks or whatever.
But transfers of wealth between cohorts is really really dangerous, especially when you end up with an inverted triangle, like many developed nations are today.