Earlier this week we ran a story on the future of the Age Pension. It said the most likely first change to making the pension fairer and perhaps more ‘fundable’ would be to put the family home in the Age Pension assets test.
But is this really fair for all retirees?
Some would argue that owning a million-dollar home should preclude you from receiving a full-Age Pension. After all, there are many pensioners who own nothing and would be receiving the same amount of money, plus Rent Assistance, as those who own stately homes.
However, many pensioners who own their homes don’t have much in the way of disposable income. And their homes may have been bought for pennies compared to today’s housing costs. Let’s face it, a million-dollar home ‘ain’t what it used to be’. A million may not buy you much these days, so should the limit be a little higher?
Perhaps $2.5 million is fair. Maybe more. Maybe not at all. What do you think? It probably goes without saying that it may not be long before the family home is on the assets test. Is this fair? If it had to be, where should the cut-off be? Why not tell us what you think in our Friday Flash Poll?
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