New research providing insight into the financial state of retirees has confirmed many Australians who are no longer working are not guaranteed financial security just because they own their own home.
“The State of the Older Nation 2025” report, compiled by advocacy association for older Australians COTA Australia, revealed 25 per cent of individuals over the age of 50 are living in poverty.
In addition, the analysis found 48 per cent believe the financial situation is worsening for people their age due to rising cost-of-living pressures. It also showed 28 per cent of respondents are wealthy and on an income of $200,000 or more.
COTA Australia chief executive Patricia Sparrow noted the findings directly challenge the belief all older Australians are wealthy because of homeownership.
“The lazy stereotype of the ‘rich boomer’ needs to be put to rest,” Sparrow said.
“This research shows a very different reality – one where one in four older Australians is living in poverty.
“For every older Australian living comfortably, there’s another counting every dollar, skipping meals or even putting off healthcare.”
This sentiment was echoed by home equity release solutions provider Homesafe Wealth Release.
“This report confirms what we see every day – many older Australians own their home, but are struggling to manage rising living costs,” Homesafe Wealth Release chief executive Dianne Shepherd pointed out.
“We need to stop equating home ownership with financial comfort. For many retirees, their wealth is locked in their home while cash-flow pressures continue to rise.”
Shepherd recognised older Australians overwhelmingly want to stay in their homes and communities, but financial barriers to downsizing, such as high stamp duty and transaction costs, made it difficult.
COTA Australia is calling for a long-term comprehensive plan for Australia’s ageing population from the federal government.
“What’s required now is a 10-year, whole-of-government plan for an ageing Australia that deals with the real pressures people face as they get older,” Sparrow pointed out.
