Retirement
Family home not off the table in retirement review
A panellist on the government’s review of the retirement income system has confirmed that the family home will be included in the scope of the review, as an increasing number of retirees show a willingness to potentially include part of their home value in the means test for the age pension.

Family home not off the table in retirement review
A panellist on the government’s review of the retirement income system has confirmed that the family home will be included in the scope of the review, as an increasing number of retirees show a willingness to potentially include part of their home value in the means test for the age pension.

Speaking at a panel event for the 27th Colloquium on Pensions and Retirement Research in Sydney on Tuesday, retirement review panellist Deborah Ralston said it was a misconception amongst some in the retirement income sector that the review would not include the family home.
“We talk in the [discussion] paper about the three pillars of the retirement system, and I noted a comment from someone saying you haven’t got the fourth pillar in there, which is housing, but actually that falls under voluntary savings,” Dr Ralston said.
“So the three key pillars are the age pension, compulsory super and voluntary savings, including voluntary super, the home, investment properties, financial and non-financial assets.”
However, Dr Ralston clarified that the review would not seek to make specific recommendations about tweaks to the retirement income system but would be “drawing conclusions on the basis of the analysis that we collect”, including several pieces of independent research as well as community submissions.
Despite Treasurer Josh Frydenberg having ruled out including the family home in the pension assets test when announcing the retirement review in September, Council of the Ageing Australia chief executive Ian Yates said it was preferable that all options be on the table for the fact-based review.
“We do have a situation where there are a lot of fixed positions that are not necessarily driven by evidence, or where evidence is corralled around a predetermined position, and I don’t exempt some of my colleagues in advocacy organisations in the sector from that,” Mr Yates said.
“Our hope is that the review will lay the groundwork for community debate on major issues, even those that are politically sensitive.”
Mr Yates said the mindset of retirees was changing when it came to a possible partial inclusion of high-value properties in the pension means test.
“The place of the principal residence in the means test is a discussion that I think there is room for having more than people think,” he said.
“We regularly survey our constituency and we have asked them from time to time what their view is about including part of the value of a home that is worth more than the average in the pension assets means test.
“The constituency has responded 50-50 yes and no, so that tells me they are divided, but it also tells me there is a conversation to be had.”

Retirement Planning
Retirement time bomb requires complex thinking
The majority of Australia’s super assets now sit in the hands of retirees and pre-retirees, but many require more nuanced investment strategies to achieve the lifestyle they want in retirement, a ne...Read more

Retirement Planning
Why some Millennials are struggling to save for retirement
Millennials are struggling to save for retirement as they face challenges that are different from other generations. What are these reasons? ...Read more

Retirement Planning
Retirement Income Review cornerstone ‘not for everyone’
Despite being the cornerstone of the Retirement Income Review, an expert has highlighted that downsizing and withdrawing equity from a property might not be the solution for all older Australians. ...Read more

Retirement Planning
Effective tips that can help Millennials retire faster
Millennials have changed the cultural and societal landscapes of the world. This is unsurprising, given the fact that they are the best educated and most diverse generation in history. ...Read more

Retirement Planning
What you need to know to get ahead financially
Australians looking to get ahead are being advised to analyse their financial situation, set financial goals and reduce debt whenever possible. ...Read more

Retirement Planning
How to adjust your wealth strategy during COVID
Investors are being urged to be conservative about spending, reduce debt and be careful of assets that are supported by government spending, as they look to adjust their wealth strategies during the f...Read more

Retirement Planning
Should older Australians downsize their property?
Older Australians face the dilemma of not being confident about their retirement outcomes, but are among the wealthiest retirees in the world due to a large proportion of their wealth being tied up i...Read more

Retirement Planning
Self-funded retirees ‘hung out to dry’ by 2020 budget
The Association of Independent Retirees has slammed last night’s federal budget release, accusing the government of overlooking older Australians in its post-COVID-19 recovery plans. ...Read more

Retirement Planning
Retirement time bomb requires complex thinking
The majority of Australia’s super assets now sit in the hands of retirees and pre-retirees, but many require more nuanced investment strategies to achieve the lifestyle they want in retirement, a ne...Read more

Retirement Planning
Why some Millennials are struggling to save for retirement
Millennials are struggling to save for retirement as they face challenges that are different from other generations. What are these reasons? ...Read more

Retirement Planning
Retirement Income Review cornerstone ‘not for everyone’
Despite being the cornerstone of the Retirement Income Review, an expert has highlighted that downsizing and withdrawing equity from a property might not be the solution for all older Australians. ...Read more

Retirement Planning
Effective tips that can help Millennials retire faster
Millennials have changed the cultural and societal landscapes of the world. This is unsurprising, given the fact that they are the best educated and most diverse generation in history. ...Read more

Retirement Planning
What you need to know to get ahead financially
Australians looking to get ahead are being advised to analyse their financial situation, set financial goals and reduce debt whenever possible. ...Read more

Retirement Planning
How to adjust your wealth strategy during COVID
Investors are being urged to be conservative about spending, reduce debt and be careful of assets that are supported by government spending, as they look to adjust their wealth strategies during the f...Read more

Retirement Planning
Should older Australians downsize their property?
Older Australians face the dilemma of not being confident about their retirement outcomes, but are among the wealthiest retirees in the world due to a large proportion of their wealth being tied up i...Read more

Retirement Planning
Self-funded retirees ‘hung out to dry’ by 2020 budget
The Association of Independent Retirees has slammed last night’s federal budget release, accusing the government of overlooking older Australians in its post-COVID-19 recovery plans. ...Read more