Yahoo Finance Aussie Boomer busts rich myth as he reveals savings amount: 'Terrifies me'
The unemployed Aussie said he had to move out of his city because it had become far too unafforable.
An older Australian has revealed the devastating amount in his savings account and believes the country is in desperate need of a "wake-up call". Young people have been hit particularly hard by the cost-of-living crisis as they battle high rents, record-high property prices, and ballooning student loan debt.
However, there are Australians on the other side of the age spectrum who are finding life just as hard at the moment but without the benefit of time on their side. National Seniors Australia chief executive officer Chris Grice told Yahoo Finance many are being pushed to "breaking point".
"This is especially true for many older Australians without savings or who are at the mercy of an unforgiving rental market, who have described to us their experience of hardship and uncertainty as ‘existing’, ‘surviving’, ‘helpless’, and ‘hopeless’," he said.
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"The Age Pension was designed on the assumption older people own their home. While 85 per cent of older Australians do, 15 per cent do not and this is set to rise as the cost of owning a home skyrockets."
He said 39 per cent of older renters have been struggling as a result of recent increases in the cost of living.
An unemployed 66-year-old man recently revealed he has no savings in the bank and had been forced out of where he lived because he couldn't afford it.
Are you an older Australian who is struggling? Email stew.perrie@yahooinc.com
"[The] rental market is just ridiculous," he said. "I live in Wodonga... I'm actually a Newcastle person. I actually left Newcastle to get away from the exorbitant rents.
"It's time for a wake-up call. We've got to get that inflation down. We've got to get the rents down. We've got to get house prices down."
But he wasn't optimistic that would happen in the short-term and admitted staying afloat was "hard" at the moment.
Aussies were horrified that some people are in their latter stages of living and are struggling this much.
"This is what terrifies me! Imagine being 66, renting, no savings, and realising you probably can never retire, because the pension isn't enough to survive on, when you need to pay weekly rent as well," said one viewer.
"Imagine being 66 and still renting this is my biggest fear in life," wrote another.
Working until you physically can't
The 66-year-old's experience is one of many across the country and other older renters fear they will never be able to fully retire.
Jo Hilder is in her 50s and is living in Maitland, NSW, with her partner. She told Yahoo Finance the stress of renting when you're getting close to retirement is terrifying.
"I think probably more than ever, it's become a very stressful factor in our relationship as the pressure is on for me to keep working," she told Yahoo Finance. "And the pressure is on him to keep supporting us to cover all of our expenses basically, as the cost of living rises.
"It's pretty upsetting to know that we will probably have to work until we can't work anymore physically."
Sydney resident Diane Benham, who's in her 70s, also told Yahoo Finance that she's still working 20 hours a week as a building manager.
“Delaying retirement wasn't originally in my plans, but with expenses on the rise, contemplating life without a steady income is concerning, so I've opted to postpone retirement,” she explained.
National Seniors Australia has called on the government to increase the rate of Commonwealth Rent Assistance (CRA) to protect these vulnerable Australians.
The 2024 Federal Budget pushed through a 10 per cent increase to the Centrelink payment, which was on top of the 15 per cent jump announced the year prior.
However, National Seniors said the government should change the way CRA is indexed so that it's reliant on the rent component of the consumer price index (CPI) rather than the general CPI number.
The body representing older Aussies also wants to see more building of social and affordable housing for seniors, as well as a targeted Pensioner Concession Card to provide additional concessions and support "to those most in need".
How much money do you need to retire comfortably?
The Association of Superannuation Funds of Australia (ASFA) has revealed earlier this year that at the current rate of inflation and the cost of goods, you need about $51,278 per year for a comfortable retirement as a single person.
That jumps up to $72,148 per year if you're in a couple.
Increased insurance prices drove retirement costs higher, with premiums up 16.2 per cent annually. Food and electricity prices also rose above inflation, up 4.5 and 6.9 per cent, respectively.
“Retiree budgets have been under substantial pressure for the past two years due to the high cost of essential goods and services,” ASFA CEO Mary Delahunty said.
“Fortunately, we are seeing [an easing in] price increases in the key categories that make up retiree budgets – home and contents insurance, fruit and vegetables, fuel and electricity.”
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