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How will Hockey's pension changes hit the mortgage industry?

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Australian Broker | 06 May 2014, 08:28 AM Agree 0
​Treasurer Joe Hockey announced on Friday that Australians born after 1965 will need to work until they are 70 to be able to receive the age pension. How will this affect the mortgage industry?
  • Clarke Kent | 06 May 2014, 09:18 AM Agree 0
    Has anyone thought about the growing portion of unhealthy children in our society who don't exercise & are overweight. Should they gain long term employment at current rate they will be on disability benefits before 40!
  • Dave Robinson | 06 May 2014, 10:04 AM Agree 0
    WooHoo now I offer loans to older clients. There is always a silver lining.
  • Brado | 06 May 2014, 10:19 AM Agree 0
    It is only a lift in the government funded age pension, which in the long run is being phased out anyway. Why would anyone born after 1965 require the age pension, when they have had superannuation their whole lives? They wont. Age pension will be abolished for anyone born after 1975 pretty soon...
  • Scott Beattie | 06 May 2014, 10:58 AM Agree 0
    I agree with Dave, at least exit strategy for anyone over 35 or so should no longer be such a concern for lenders!!! :)
  • BJ | 06 May 2014, 12:40 PM Agree 0
    An alternate view may see older Australians seeking alternate retirement options and follow the lead of US, UK and European retirees.
    1st world jurisdictions are providing retirement havens for US, UK, EU and Australian retirees. Why, well their ‘retirement” dollar simply goes further. Before you jump on the argument of safety, health, medical services and aged support, these 1st world countries provide a standard equal to Australia.
    Retirees need to be shown a little more respect and consideration and should not wear the brunt of failed policy. Further, they do not owe younger generations a debt of gratitude and for those who consider the parents’ home as a God given right of inheritance, you need a wake up call.
    Lenders will not start lending to older potential borrowers. No you beaut, new equity release scheme will be developed and Australia is not the only country facing the ageing population dilemma and it did not sneak up on us. Buying property like Monopoly will not solve the problem.
    Australia has a fundamental structural problem which needs to be addressed and the new government like the last have few answers. Austerity fails.
    Plan your retirement now by considering havens which will cater for a wonderful retirement and go to your grave with a smile on your face and not wither away whilst your family hungers for the sale of your home.
  • Wozza | 06 May 2014, 02:25 PM Agree 0
    Brado has it right!!!
  • John | 06 May 2014, 02:58 PM Agree 0
    Just proves, what exit strategy? This will not exist if the retirement age is increased.
    This Government is only fixing up the former Governments mess.
    Lenders will need to be a bit more open minded
  • Papery | 06 May 2014, 03:09 PM Agree 0
    Irrespective of how much or when you started contributing to super, the amount of Super you have will also be determined by how those funds are managed. There are already many stories about people being naively led into high risk investments only to see it significantly diminish or just get 'locked up' in a problem market. If you leave it in low risk (low return) you still may not have enough when yo need it. and there are way too many people who dont get the opportunity to contribute due to years raising a family (unpaid), or just being in low paid jobs, or get slammed in a divorce (and that applies equally to same sex & defacto relationship break ups).
    And we still have the problem of high cost of living & housing affordabilty (FHB), a lack of youth employment oppportities, which are going to get worse with us oldies competing for the jobs & hanging onto ppty.
    The times are a'changing....
  • David Tansek | 10 May 2014, 11:11 AM Agree 0
    What exit strategy when "new entrants - first mortgage" are not there! If there is no asset - house, there is no NEED for exit strategy!
    new generation does not hold property - there need to be more "incentive" on "first home buyers", or the whole system collapses!, but it is 21 years away, so lets stick heads into the sand!
    Would be interesting to know how lenders perceive that fact!?
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