Housing an indispensable part of retirement policy

The Australian Institute for Progress welcomes the recognition by the federal treasurer in his speech yesterday, to the UDIA, that home ownership is almost indispensible to a dignified retirement, by allowing home buyers to access their super in certain situations.

Institute Executive Director Graham Young said that home ownership was the greatest defence against poverty in old age, and the largest store of wealth for retired Australians.

“Average age range superannuation balances for males between 55 and 64 is $323,700, but the average capital city house price ranges between $345,000 in Hobart to $852,000 in Sydney.

“That demonstrates where our wealth really lies.”

Mr Young said that if Australians didn’t own their own home when they retired, they would take their superannuation and buy one, and if there was still a debt, they would pay the mortgage off at that stage.

“That’s one reason why the age range average superannuation balance decreases from $323,700 between 55 and 64 to $243,900 between 65 and 74.

“So it is reasonable that savings for superannuation be available to bridge the deposit gap, as without your own home, retirement will be dire.”

Mr Young warned against over-complicating access to super for a house purchase.

“The government is foreshadowing restrictions on the age at which this device can be used.

“While a first home is important, a subsequent home can be just as difficult to buy because of divorce, or financial mishap later in life.

“Setting age limits on access to super to buy a home, or limiting it to the first ever home, will work against the interests of individuals, and the country

“The important thing is that people own their own home by the time they hit retirement – it is the most important part of a retirement strategy.”

For further information contact Graham Young 0411 104 801.