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Renting pensioners left with less than $10k
A growing proportion of retired Australians who fall on the age pension are likely to experience rental stress brought on by the inability to afford housing earlier in life.
That is the finding of a study by the Swinburne Institute for Social Research, which surveyed Australians about their financial situation and barriers to wealth, and found housing affordability a key determinant of financial hardship later on.
To afford a comfortable retirement, a single superannuant should have roughly $42,500 a year, according to the Association of Superannuation Funds of Australia (ASFA), but once rent is factored in, a single retiree on the age pension is more likely to be left with less than $10,000.
“Assuming full supplements and rent assistance, a single pensioner paying median market rent would have an annual after-housing income of $9,614.20,” the study found.
“A home- owning single age pensioner receives a little over 95 per cent of the ASFA modest retirement standard amount, but a single pensioner in private rental paying median market rent on a one-bedroom flat has, post-housing costs, the income equivalent of 41 per cent of the ASFA standard amount.”
The paper says the age pension is “seriously out of step with housing policy” and also calls for further fiscal measures to improve housing affordability, such as affordable rental housing schemes and curbing tax incentives for property investment.
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This article is over two years old, last updated on October 10, 2016. While RateCity makes best efforts to update every important article regularly, the information in this piece may not be as relevant as it once was. Alternatively, please consider checking recent superannuation articles.
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8.70%
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$351
10.70%
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Product database updated 19 May, 2024
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Promoted superannuation
High Growth (Lifecycle investment)
- Promoted
- Industry
- Income protection insurance
Annual fee at $50k balance
$497
1yr return
13.60%
Personal Account - Balanced (MySuper)
- Promoted
- Industry
- Income protection insurance
Annual fee at $50k balance
$351
1yr return
10.70%
Lifecycle Investment - Balanced
- Promoted
- Industry
- Life insurance
- TPD insurance
- Income protection insurance
Annual fee at $50k balance
$507
1yr return
11.40%
Balanced Growth
- Promoted
- Industry
- Life insurance
- Income protection insurance
Annual fee at $50k balance
$477
1yr return
10.80%
Product data updated on 19 May 2024
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