Politicians are all too aware that a metaphorical poverty freight train is coming for a generation of renters, but can a collision be avoided, asks David Taylor.
Again we hit a problem because, analysts say, assuming many of us live to a ripe old age, renters will need a nest egg worth hundreds of thousands of dollars just to keep a roof over their head.
“Certainly we would expect the number of Australians living in poverty to rise substantially from where we are today as those rates of home ownership fall,” says the Grattan Institute’s economic policy program director, Brendan Coates.
Assuming low-income households don’t achieve home ownership, they will need at least $100,000 in superannuation in retirement to bridge the income poverty gap ($35,000 minus $30,000) over a 20-year period post-retirement.
To put it another way, in theory, CRA would need to rise to completely cover the cost of the cheapest rentals to help aged pensioners keep a roof over their heads.
The ABC contacted the minister for families and social services, Amanda Rishworth, to ask if a substantial increase in rent assistance — as much as 40 per cent — was on the government’s agenda.
Outside of government support, avoiding the freight train requires a significant improvement in housing affordability for younger Australians or mechanisms to ensure low-income earners achieve substantially higher superannuation balances in retirement.
The original article contains 1,355 words, the summary contains 201 words. Saved 85%. I’m a bot and I’m open source!
This is the best summary I could come up with:
Again we hit a problem because, analysts say, assuming many of us live to a ripe old age, renters will need a nest egg worth hundreds of thousands of dollars just to keep a roof over their head.
“Certainly we would expect the number of Australians living in poverty to rise substantially from where we are today as those rates of home ownership fall,” says the Grattan Institute’s economic policy program director, Brendan Coates.
Assuming low-income households don’t achieve home ownership, they will need at least $100,000 in superannuation in retirement to bridge the income poverty gap ($35,000 minus $30,000) over a 20-year period post-retirement.
To put it another way, in theory, CRA would need to rise to completely cover the cost of the cheapest rentals to help aged pensioners keep a roof over their heads.
The ABC contacted the minister for families and social services, Amanda Rishworth, to ask if a substantial increase in rent assistance — as much as 40 per cent — was on the government’s agenda.
Outside of government support, avoiding the freight train requires a significant improvement in housing affordability for younger Australians or mechanisms to ensure low-income earners achieve substantially higher superannuation balances in retirement.
The original article contains 1,355 words, the summary contains 201 words. Saved 85%. I’m a bot and I’m open source!