Not many Australians have escaped the cost-of-living pressures of recent times. And research confirms that this applies to older Australians too.
For some older Australians, it has called for drastic measures. One such example is Jane Bari and her husband Jonathon. With a mortgage payment due and just $100 in the bank, the couple were forced to rethink their spending habits and lifestyle.
Ms Bari sat down and formulated a budget, soon realising that the changes would need to be drastic. Not only was eating out off the list, but so was their own house. The pair were forced to sell it and buy a smaller one.
Jane and John were confronted with their startling reality in 2017, and they were perhaps an exception to the rule at the time.
But that is no longer the case. This year’s National Seniors Social Survey (NSSS) revealed that 90 per cent of Australians are ‘concerned’ about keeping up with rising living costs. A quarter of the 5700 Australians aged over 50 who completed the February survey classed those concerns as ‘extreme’.
Worryingly, 80 per cent of survey respondents said they were already negatively affected by cost-of-living pressures. For 20 per cent, the impact has been ‘major’.
Given further interest rate rises since then, it’s highly unlikely that percentage will have fallen in that period. And despite inflation dipping in recent months, it remains historically high. The current figure, therefore, is now probably above 80 per cent.
How are older Australians adjusting to cost-of-living pressures?
For many, the answer to that is tapping into their superannuation reserves.
In the first quarter of 2023 alone, retirees withdrew $14 billion from of the superannuation system, representing an increase of more than 20 per cent over the same period last year. This upsurge is almost certainly the result of them looking to cover living costs or pay down debt.
Aware Super reports around a quarter of those withdrawing lump sums said they were doing so to meet everyday expenses. A similar story emerged at Australian Super, where staff are getting more inquiries about accessing one-off payments for living costs.
The cost-of-living pressures are unlikely to ease anytime soon, meaning more Australians will be at risk of adverse financial circumstances. And it appears women are at greatest risk, according to data from the Council of the Ageing (COTA) Victoria.
COTA chief executive Chris Potaris explained. “Women over the age of 55 are the fastest-growing cohort of Victorians at risk of homelessness,” he said. “It is a perfect storm that risks overwhelming some older Victorians.”
And that storm is raging all over Australia. Mr Potaris is concerned that many of those under pressure will cut corners and “may make decisions that put their health at risk”.
Hopefully not. But genuine relief from cost-of-living pressures look to be some way off for now.
How are the cost-of-living increases affecting you? What changes have you had to make? Let us know in the comments section below.
Also read: Grow your own veg to beat the cost of living
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