Retirement Affordability Index May 2021

About 80 per cent of Australian retirees are homeowners, which is comforting but only part of the story. While future generations will have sizeable superannuation balances, given the super guarantee was introduced only in 1992 – when it was 3 per cent, many baby boomers do not.

The result is that many homeowner retirees and pre-retirees are asset rich – having enjoyed rising property prices over the decades – but income poor.

Are there solutions?

In this edition of the Retirement Affordability Index, we asked our experts to explain the strategies to boost your retirement income. Plus, we revisit that topic that won’t go away – will the home one day be subject to the Age Pension assets test?

Dr Deborah Ralston, a member of the federal government’s Retirement Income Review panel, shares her views on older Australians’ desire to leave a legacy and tells how they should be enjoying a better retirement.

Retired actuary John De Ravin explains how to ‘cash in the castle’ through reverse mortgages and equity release schemes; we outline the Pension Loans Scheme and retirement specialist Paul Rogantells what must change to make it more accessible, and we share the latest information about the downsizer contribution and how it can ease your nest egg concerns.

Also, Challenger’s chairman of retirement income, Jeremy Cooper, reveals the added bonus of home improvements and tells how investing in your home can boost your Age Pension entitlement, and Australia Institute economist Matt Grudnoff gives his view on whether the home should be part of the Age Pension assets test and YourLifeChoices members have their say on the topic.

Of course, the Retirement Affordability Index provides the most accurate estimate of retiree costs for well-off, constrained and cash-strapped couples and singles – and we explain how the March quarter cost-of-living increases affected your budget. And, in government updates, we share the latest information on the Age Pension, superannuation changes, tax time tactics and more.

Now settle in and digest this Retirement Affordability Index so you can get ahead of the curve in 2021!



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