Boomers Are Going To Be Fine In Retirement; You, However, Will Be Living In A Stormwater Drain

Your wellbeing in old age will be determined largely by whether you own a house, and also how handy you are with a broken bottle.

In these increasingly divided times it’s important not to add fuel to fires which cast generation against generation when the real enemy is the system which should serve all citizens with respect and honour.

But since that’s not going to happen any time soon, let’s once again rage that Australia’s current pensions and superannuation systems are based on the needs of baby boomers and anyone not in their rather unique asset-heavy economic situation are going to spend our autumn years fighting one another over rat meat in a tarpaulin-covered ditch.

She seems like a reasonable landlord.

First the good news: if you’re a retiree right now then you are living the life of Riley – and Riley is doing better than any other generation in history.

A new Grattan Institute study concluded that most Australian retirees suffered barely any change to lifestyle upon retirement and that rates of superannuation are perfectly sufficient, despite the current scare tactics being employed by the super industry.

There’s a downside though. Quick question: do you own your own home? No? Then your outcome might be more rat-meaty.

This is due to something which is slowly dawning on our political leaders with varying degrees of horror: every retirement system in Australia pre-supposes that the retiree in question owns their own home. And that is increasingly not the case – and lifelong renters are going to find retirement very difficult, especially older single women.

That why they’re still living in sharehouses.

“It’s clearly a problem. Home-ownership rates are falling very fast, particularly in those on lower incomes,” Grattan’s John Daley told Domain. “Our estimates are in that 35 years home-ownership rates among retirees will be about 57 per cent, and right now they’re 80 per cent for existing retirees.”

There are some suggestions how best to combat these effects: one is upping the rental assistance for pensioners. Another is to change the asset-assumed nature of the pension to better reflect the likely have/have-not split.

In the meantime: now’s a great time to stake out the culverts and railway bridges that might provide you shelter in your dotage.

And also stock up on rat meat while you can.

Oh Great, Now Ordering Too Much UberEats Might Affect Your Chances Of Getting A Home Loan

At least it's a not directly smashed avocado-related reason for low home ownership, though.

There are plans afoot for “open banking”, an exciting sounding term which you probably assume means something disruptive and innovative and outside of the box and blue-skying and noun-verbing.

What it means is that banks will be able to share your financial data with other institutions – with your permission, of course. And if you didn’t give that permission then they’d just assume you had something to hide.

It’s something which is yet to be legislated but is on the cards to become reality in Australia inside of 12 months – so much so that Domain have already started pondering how it’s going to affect people looking for home loans.

Short answer: so, how often do you call UberEats, would you say?

“Hey, Steve.”

That’s the sort of question which could be asked by future-banks as they assess whether you’re a good, organised person that does one big shop every Saturday and cooks healthy meals each night while smugly reflecting on the joys of self-denial and thrift, or if you’re an irresponsible jackanapes who orders take out because there’s only two onions and a half-drunk Fanta in the fridge.

According to the article, around a third of Australians order delivery or takeout once a week, which rolls up to a few thousand over the course of a year. And that’s enough to affect a home loan.

“People with sound spending habits will generally be better off because they’ll be in the position to share their own records and habits with lenders,” Canstar executive Steve Mickenbecker told Domain.

“People with dubious spending habits will find it harder getting credit. The realities are, defaulting on loans puts you in a worse financial position than not getting the loans in the first place.”

So yes, your Menulog habits are killing your future credit rating. On the plus side, now Australia’s media to replace the played out avocado trope in all future articles about how young people can’t save for a house because of their eating habits.

So… yay, we guess?

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