Australia’s superannuation rules could “significantly change the dynamics” of the property market, one super provider has warned.
Recent modelling suggests the average 65 year-old retiree’s super balance will likely be exhausted after only six years of retirement, according to Club Plus Super.
Chief executive Paul Cahill said Australia’s rapidly aging population could result in hundreds of thousands of retirees running out of funds and being forced on to the pension.
“This situation may see many retirees sell their family homes to unlock equity and either rent, downsize or move back in with their children,” he said.
“These trends could significantly change the dynamics of Australian families, the Australian property market and the Australian economy.”
Mr Cahill said Australia needed to immediately reform the super system or accept that many retirees would have to live with their children.
“More needs to be done or the country will face new and severe pressures on families and governments to support generations of retirees who do not have adequate superannuation savings,” he said.