Fix housing cost or youth will ‘drain economy’ at retirement
PRE-TAX mortgage repayments and releasing superannuation for home buyers will ensure young Australians do not become a drain on the national economy when they retire.
The Committee for Economic Development of Australia makes the suggestions in a report calling for an overhaul of retirement and superannuation policies.
"Our aging population and decreasing housing affordability mean Australia's retirement system structure needs a significant rethink," CEDA CEO Stephen Martin said.
Professor Martin released CEDA's the Super Challenge of Retirement Income Policy on Tuesday.
"Talk about our aging population and the impact on retirement policy has been part of national debate for many years but the impact of sustained housing affordability issues is only just beginning to be recognised as a significant issue for retirement policy," he said.
"However, if it is not addressed the long-term consequences could be significant with an increasing number of people living in poverty in retirement and unsustainable fiscal pressure on the federal budget."
Professor Martin said the poverty rate of older Australians was three times the Organisation for Economic Co-operation and Development average.
"That number is likely to significantly rise over the next 40 years," he said.
- APN NEWSDESK