Retirees are being blocked from accessing the money trapped in their property as banks pull out of the reverse mortgage market, fuelling a growing income inequality among older Australians.
Despite the growth, the reverse mortgage market in Australia has remained static at around 35,000 outstanding loans valued at $3.5 billion for the past decade. The UK doubled that figure in 2017 alone. Australia is ranked first on Credit Suisse's global wealth report with median net wealth of up to $200,000 per adult, but also has more than a third of its population aged over 65 in relative income poverty in retirement, the second highest rate in the OECD.
ErykBagshaw Asset 'rich', ie the house you live in. No mansion. 3 bed brick veneer . Paid off with Super so that doesn't leave much in the bank for LOTS OF US. Rely on govt pension who h doesn't cover big bills like car costs, house insurance. Not all BB are living high life
ErykBagshaw What rubbish . Prices of property decline as they must and u are just left with the debt .
ErykBagshaw ‘older Australians ... shut out....money trapped...’ Seriously, the media can’t report on anything without fear and loathing (older people) and the devil incarnate (evil banks). One has to consider global warming, refugees, potus, coal, carbon reporting is just as irresponsible.
ErykBagshaw And let’s not forget a lot of boomers have given them deposits for their house and free babysitting
ErykBagshaw I dislike reporting of doom and gloom. It appears to accelerate the doom with out analysing the potential of surviving with minimal problems.
ErykBagshaw Waiting fo Boomer haters. Knock yourselves out Millennials - just remember, this is your inheritance we are talking about.
ErykBagshaw Predatory lending has to stop ?
ErykBagshaw These people have lived through a once in a 100 years wealth creation event and 26 consecutive years of economic growth. If they haven’t been able to take advantage of this, it is their own fault. If they need to access the equity in their home, sell it.