For decades, retirement in Australia came with an assumption – by the time you stopped working, the mortgage would be gone.
However, for a growing number of older Australians, that reality is slipping further out of reach.
New research warns hundreds of thousands are heading toward retirement still renting, financially exposed and unsure where they will live.
A national survey commissioned by Home in Place has revealed mounting pressure on Australians aged 55 to 69 who are renting privately, with many already cutting essentials, delaying retirement or fearing homelessness later in life.
The findings paint a confronting picture of a retirement system increasingly out of step with modern housing realities.
Among the 772 renters surveyed, 18 per cent said they did not believe they would ever retire, while more than a quarter expected major financial stress in retirement.
Just eight per cent believed they would retire comfortably.
Perhaps most alarming, one in three respondents said their superannuation would last less than five years if they retired while still renting.
Home in Place Group Executive Manager Martin Kennedy warns that there is a huge hole in Australia’s retirement system.
“Many Australians in their 50s and 60s are still renting and facing the full force of a private rental market that was never designed for people entering retirement,” he said.
“For around 750,000 Australians, the retirement system is simply not fit for purpose.
“We need more social and affordable housing to avoid disaster.”
This pressure is already forcing many to make difficult choices.
More than half of respondents said they were cutting back on groceries and social activities to stay afloat, while one in four had reduced spending on healthcare or medication.
“What we pretend is true in Australia is that by the time you reach retirement you will own your
home and have very few housing costs,” Mr Kennedy said.
“The pension assumes it.
“The superannuation system assumes it.
“Our entire housing policy apparatus assumes it.”
“According to the Australian Taxation Office, the median super balance for people in this age bracket is between $170,000-$210,000.
“Median rent alone in any capital city will absorb this entire amount in less than a decade.
“Throw in escalating living costs and the whole lot could be gone in the blink of an eye.
“When a third of people tell us their super will last less than five years, that is not a retirement.
“That is a countdown.”
Home in Place is now continuing its ‘One in Ten’ campaign, urging governments to ensure at least one in every 10 new homes built is designated social or affordable housing.
“One in Ten is a simple, achievable step that would make a profound difference,” Mr Kennedy said.
The survey also highlighted fears around employment security for older workers still relying on income to survive.
When asked what they would do if they could no longer afford rent, many respondents pointed to moving to cheaper areas, relying on temporary accommodation or moving in with family.
“The choice many of these people will face is between a life of demeaning poverty, or working until they drop,” Mr Kennedy told the Newcastle Weekly.
“More than a quarter said they didn’t know what they would do.
“That in itself is a huge worry.”
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