Pension Age Increase Halted
Australia is in the midst of raising the pension age from 65 to 67, as planned by former Treasurer Wayne Swan. This process began in 2017 and will be complete in 2023, with the pension age rising by six months every two years to get there. A subsequent budget, under then Treasurer Joe Hockey, announced that the pension age would increase to 70 by 2035.
On Wednesday September 5th, Prime Minister Scott Morrison announced that this secondary increase to 70 years would not be occurring under his leadership.
This is much to the relief of those working in physically demanding occupations, and those who might find it difficult to find ongoing employment in their industry due to age discrimination. As well as those just looking forward to retiring!
But while the Age Pension is reported to be the main source of income for 49% of retired men, and 45% of retired women*, the Australian Government advises that it is only one of the “three pillars of retirement income”. The other two pillars are superannuation and private investment.
All three are important, but releasing equity from the home, such as with a reverse mortgage, is a fourth option and can offer a level of flexibility that the three traditional pillars often cannot.
A reverse mortgage is not always the first option that comes to mind when retirees are starting to struggle with bills, or just finding that their retirement isn’t what they imagined it would be. But here at Heartland we have already helped over 15,000 senior Australians access the equity in their home to enjoy a more comfortable retirement. We could help you to tap into a new source of income if the Age Pension is not meeting your needs.
Information provided is accurate as at 10 September 2018 and may change from time to time.