Two in three retirees who rent in the private market live in poverty, according to a new Grattan Institute report, with the issue set to get worse.
In the Renting in Retirement: Why Rent Assistance Needs to Rise report, the Grattan Institute found that home ownership is falling among poorer Australians approaching retirement. The research shows that between 1981 and 2021, ownership rates among the poorest 40% aged between 45-54 years old fell from 68% to 54%.
The report is calling on the Government to raise the maximum rent assistance by a further 50% for singles and 40% for couples.
“Australia is failing too many retirees who rent,” report lead author and Grattan Institute Housing and Economic Security Program Director Brendan Coates said.
“Only a further substantial boost to Rent Assistance can ensure that all Australians get the dignified retirement they deserve.”
These increases would boost the maximum rate of Rent Assistance by A$53 a week for singles and $40 a week for couples.
This would allow single retirees to afford to spend $350 a week on rent, which is enough to rent the cheapest 25% of one-bedroom homes across Australian capital cities.
The boost would cost the Government $2 billion a year with around $500 million going to retirees.
Currently, the rent assistance available to those who need it includes the Commonwealth Rent Assistance and the government's Rent Assistance.
The Government recently raised the maximum of Rent Assistance by 27%, but even after this increase, the average retiree relying on income support can only afford to rent 4% of one-bedroom homes in Sydney, 14% in Brisabne and 14% in Melbourne.
