A new analysis highlights how tough it is for renters in retirement, particularly those who are single.
A new analysis shows just how important it is to own your own home in retirement and how tough it is for those who rent, as a lack of housing supply and rising prices lock out more people from homeownership.
Because of the way the income test works, a non home owner can only have up to $289,000 in financial assets, including superannuation, after which they would start receiving less than the full age pension, the analysis shows.Under the income test, retirees are “deemed” to earn income from their financial assets, regardless of what the assets actually earn.
Retirement Essentials’ analysis shows the stated maximum in assets of $693,500 that a non-homeowning couple can have and still receive the full age pension is, in fact, $505,000. While the bank of mum and dad is helping more people into the property market, those without parents willing and able to help are more likely to be locked out of the housing market.That is particularly true as prices continue to rise. CoreLogic figures show property prices grew across the combined capitals by 9.7 per cent in the 12 months to March 31.to help first-home buyers and others who find it difficult to save a deposit.
Under the scheme, people of pension age – including those not receiving any age pension who own their home or investment property – can borrow up to 150 per cent of the full age pension.
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