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Proposed pension age increases to heat up reverse mortgage market

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Australian Broker | 15 Apr 2014, 08:32 AM Agree 0
A pension age increase is likely to impact the reawakening reverse mortgage industry
  • Denise Brailey BFCSA (Inc) | 15 Apr 2014, 11:07 AM Agree 0
    When we reach 60, many of us have health issues and more visits to doctor than we would care for. We cannot stand for long periods - and sitting can be worse. Some are working until 80+ however they are few. I am on the old age pension now but for two years I was on the new start - jobless program for first time in my 45 year working life. Devastating time - with disability. Joe Hockey needs to get a grip. Its no way to treat the older people who worked hard as backbone of this country. As Kerry Packer stated "you do not spend our money wisely for me to give you some more." I worked paid taxes raised children on my own, put myself through Uni and never asked Government for a penny until my sixties when ill health and unemployment (for first time) caused me to ask for a bit of assistance. We expected the Government to understand and contemplate these issues. Baby Boomers are not going to be sitting ducks for political blunders made by bad decisions. Joe you better start understanding the mood of the older electorate. Abstinence from travel for politicians would be a good start.
  • Warren Gibson | 16 Apr 2014, 01:19 PM Agree 0
    Reverse mortgages are simply not sustainable because they rely on borrowed money which can be difficult if not impossible to secure in tough economic times. This was never more evident than during the GFC. Society wants older people to die and pass on their assets. A better solution for seniors (perhaps not to the liking of their beneficiaries) is to enable them to incrementally sell down their property asset (the one truly valuable asset that most have) to following generations who can buy it up through their superannuation, which is a sustainable, renewable source of funding. Property is so costly now that younger people find it increasingly more difficult to afford to purchase property outright. In this way even a twenty-something year old could afford to put their foot on the property ladder incrementally buying property from seniors incrementally selling it. With the right legal/investment structure seniors could still retain the right of residency until death or aged care accommodation takes them away from it. This is an elegant solution that helps people at both ends of the adult life cycle.
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