A new study shows age pensioners are income poor but asset rich, and suggests seniors may be encouraged to tap into the wealth in their homes to improve their standard of living.
The study shows Australian seniors are more likely to be home-owners than their counterparts in other rich countries. But Australia's elderly are struggling with lower incomes than Canada, Germany and Britain, and are campaigning the Federal Government for increases to the age pension.
The author of the study, Dr Bruce Bradbury, of the Social Policy Research Centre at the University of NSW, said steps needed to be taken to encourage elderly people to "spend the kids' inheritance now". These might include concessions on stamp duty for elderly people to encourage them to trade down to smaller houses.
Dr Bradbury said the tradition of hanging onto housing wealth to pass on to their children is inefficient and does nothing to improve people's living standards in old age.
He wants the reverse mortgage schemes to be made more attractive, and the risks involved to be better managed.
1218306901693-brisbanetimes.com.auhttp://brisbanetimes.com.au/news/national/sell-family-home-to-fund-old-age-study/2008/08/12/1218306901693.htmlbrisbanetimes.com.auSydney Morning Herald2008-08-13Sell family home to fund old age: studyAdele Horin
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