1 in 4 Aussies to retire without homes
May 31, 2011 4:32 PM EST
A new white paper by REST Industry Super is calling on individuals, the finance industry, media, government and superannuation funds to change their attitude to superannuation as increasing numbers abandon the “Great Australian Dream” of owning their own home.
The Home Ownership and Superannuation White Paper examines how, with many Australians choosing not to, or unable to enter into home ownership, buying property will no longer be the largest investment they make in their lifetime.
Currently, 15 per cent of Australian retirees do not own their own home. In the next five to 15 years there will be closer to 20 per cent of individuals retiring without owning their own homes, while in 15-25 years time this is likely to have risen to about 25 per cent.
REST Industry Super CEO, Damian Hill said in light of this decline and superannuation increasingly becoming the biggest financial decision a person will make, an attitude shift is required to apply the same level of attention to our retirement nest-eggs as we previously would have to purchasing a property.
“Historically, home ownership rates in Australia have been very high; around 80 per cent by retirement age. However the home ownership rate for those under 35 is less than half this and is in serious decline. In the last financial year alone, the number of first home buyers in Australia declined from 190,000 to just 90,000.
“While some young Australians are consciously deciding not to purchase property, many others want to buy a home but are unable to because of the reduced affordability of housing, especially in the capital cities.
Mr Hill said the problem with this is that so much financial advice and policy has been developed around the assumption that people will own their home when they retire. But while home ownership has long been one of the key pillars of Australia’s retirement income policy, it is certainly showing signs of crumbling.
To contact the editor, e-mail:
Most Popular Slideshows
- George Clooney And Amal Alamuddin's Wedding In Venice: Photos Of Groom And His Family, Friends [Slideshow]
- NFL Recap - Week 4: Green Bay Packers 38, Chicago Bears 17 [PHOTOS]
- Walking Is Superfood For Fitness; Celebrities Who Walk For Health
- Derek Jeter With The New York Yankees Through The Years [IN PICTURES]
Join the Conversation
- Hong Kong Protests Cause Closure Of Banks & Instagram Outages In China
- Federal Court Orders Coles To Hang Signs For 3 Months That It Passed Off Par-Baked Bread As Fresh From The Oven
- Microsoft To Have Its Own Retail Outlet in Manhattan
- Telstra To Convert Old Payphones Into Wi-Fi Hotspots
- #Bendgate Video Hits Almost 46 Million In 5 Days, But Impact On Apple’s Finances Minimal
- 3 Reasons to Get the Samsung Galaxy Note 4 Instead of the iPhone 6
- iPhone 6 vs Moto G 2014: Motorola’s Budget Smartphone Takes On Apple’s Premium Smartphone
- Google HTC Nexus 9 Tablet October 24 Launch Date Benefits Many
- Galaxy Note 4 vs Nexus 6: Which Smartphone Dominates
- MH 370 Search In Ocean To Intensify With Hi Tech Ships Joining The Plane Hunt From October
- Nexus 7 Tips and Tricks
- Obama’s Bid To Blame Intelligence Chief For Inaction On ISIS Backfires: McCain Asks Obama To Admit Own Mistakes