The harder you pull an elastic band, the more likely you get hurt when it breaks.
Governments keep the policy status quo at their peril.
A generation of renters are staring down poverty in retirement unless something drastic changes
Submitted 7 months ago by Ilandar@aussie.zone to australia@aussie.zone
https://www.abc.net.au/news/2024-03-16/generation-of-renters-risk-poverty-in-retirement/103592710
Comments
Railison@aussie.zone 7 months ago
umbrella@lemmy.ml 7 months ago
they forgot the “comforts” they gave to us was meant to keep us from fucking their shit up
Haagel@lemmings.world 7 months ago
Just look at this bullshit that they’re advertising on Facebook. This will be the end of the middle class in America.
Haagel@lemmings.world 7 months ago
Sorry. I’ve just realized that I’m in the Aussie instance…
hitmyspot@aussie.zone 7 months ago
Haha, yes, and we have an abc, too.
Custoslibera@lemmy.world 7 months ago
Please don’t give Australian property investment firms any ideas…
autotldr@lemmings.world [bot] 7 months ago
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!
DeltaTangoLima@reddrefuge.com 7 months ago
This is just so damn bleak. I honestly don’t know how my kids are going to rent OR buy in the future. I’d happily see the value of my house decline, if it was because the market became more affordable for the next generation.
coaxil@lemm.ee 7 months ago
Sall good, climate issues will probably be the bigger thing for them to worry about in the future than securing a house :/
DeltaTangoLima@reddrefuge.com 7 months ago
That too. See? Bleak.
Ilandar@aussie.zone 7 months ago
At least you own property, I guess. The people I feel really bad for are the ones with no generational wealth, whose parents die as broke renters and leave them nothing.
DeltaTangoLima@reddrefuge.com 7 months ago
Well, that was kinda me and my wife. Definitely nothing from any of our parents, plus we both walked away from a couple of shitty marriages with little to show for it.
The only real upside is that I have a good career with a good income, and we were able to get (back) into the mortgage market as we hit our 40s. Not where we wanted to be, but at least we’re plugging away at it.
The bit that’s bleak is that, according to our rates notice, our property’s gone up 50% in the 8 years we’ve been here. Wage growth has been nowhere near that over the same period, if at all. So any dreams the next generation (our kids) are having about getting into their own property is getting further and further out of reach.
I’m resigned to the fact that it’ll probably be a very long time before we’re empty nesters.
Hanrahan@lemmy.world 7 months ago
I’m wondering how to connect to an org? I have no kids, had a vasectomy decades ago over concerns about world population and biodiversity issues… I keep my carbon emissions low and vote Green. Seems to me I give more fucks about a future livable planet for other peoples children then many parents do but that aside.
Anyone aware of a genuine community org that might be interested in me leaveing them my modest house and they can use it to house people ? I am guessing they’ll get fucked over with stamp duty though for the title transfer, so maybe a modest sum to cover that for them as well?
Currently my will specifies everything is liquidated and then distributing the proceeds to reputable charities so, maybe that still makes more sense?