New research has revealed that older Australians retiring without owning a home will need nearly twice the superannuation compared to those with a paid-off property if they want to enjoy a comfortable lifestyle.
Key Findings
A single retiree who rents requires about $659,000 in superannuation, compared to $322,000 for a homeowner.
A couple renting needs around $786,000 combined, while homeowners need $432,000.
Renters are three times more likely to face financial stress in retirement.
Advocacy Group Warning
Super Consumers Australia has cautioned that renters are “at real risk of retirement disaster” unless the federal government intervenes. CEO Xavier O’Halloran said:
“Every day this isn’t addressed, renters face an impossible financial challenge in retirement … we’ve got a crisis facing retirees right now.”
Data Basis
The report used Australian Bureau of Statistics (ABS) data, focusing on retirees in the middle range around the 50th percentile who live comfortably but not extravagantly. Housing costs were modeled on one-bedroom apartments in capital cities for singles and one- to two-bedroom units for couples.
The analysis compared weekly property maintenance costs for homeowners with rental payments faced by tenants, alongside everyday living expenses.
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