Decreased housing affordability to affect retirement
Becoming a home owner in Australia is even more of a distant dream with a drop in housing affordability, according to reports by Adelaide Bank and Real Estate Institute of Australia (REIA).
The December quarter report found that the proportion of family income required to meet loan repayments increased by 1.1 percentage points to 31.5 per cent.
Adelaide Bank general manager, Damian Percy, said that development of public policy could help ease the supply side problems that were currently putting pressure on housing affordability.
Commenting on arising future issues Percy said that there would be negative longer term outcomes such as retirement savings adequacy.
"Quarterly studies such as the ASFA (Association of Superannuation Funds of Australia) Retirement Standard assume that people own their own homes when calculating the amount needed each week for a comfortable life in retirement," Percy said.
Reports by ASFA has found that single retirees will need $430,000 in retirement savings and couples will need $500,000.
The affordability report found the ACT was the most affordable state or territory for home buyers, and NSW was the least affordable with an average loan size above $400,000.
Recommended for you
Sharing his reasoning in joining the FSC board, WT Financial chief executive, Keith Cullen, believes “product and advice cannot be separated” from each other in the current environment.
The Emerge Foundation, a charity run by financial advisers and fund managers, has announced a scholarship program to help veterans transition into tertiary education.
In an open letter, Sequoia chief executive Garry Crole has hit out against shareholders “with a personal axe to grind” as he fights for his job ahead of an EGM.
The JAWG has announced it is in talks with Treasury around five “core principles” to strengthen the education standards for new entrants to the financial advice space.