Greater rent assistance needed for retirees

According to COTA Australia, an urgent increase is needed on rental assistance to prevent older people from living in poverty.

The call follows the release of a Grattan Institute report which shows that two in three retirees who rent in the private market live below the poverty line.

COTA Australia Chief Executive Officer Patricia Sparrow said the report strengthens ongoing calls for the federal government to provide a significant boost to the Commonwealth Rent Assistance scheme and for its methodology to be reviewed.

“The current system is allowing too many retirees to fall through the gaps,” Sparrow said.

“Two in three retirees who rent live in poverty. That’s a shocking statistic that we can’t continue to ignore.

“For older single women the figure is even worse, with 80% of single retired women living in poverty.

“The federal government needs to initiate an independent government-funded review of demand side housing assistance schemes, including the Commonwealth Rent Assistance scheme, as part of a suite of housing and cost of living policies.”

Sparrow said the current housing market is difficult for people of all ages and economic situations, but for those on fixed incomes like retirees, who more often than not simply do not have sufficient savings to keep paying rent in retirement, the situation is dire.

“Everyone deserves to live with dignity in retirement, but the fact that we’ve got two in three retirees who rent in the private market living below the poverty line shows that’s simply not happening.

“We know the largest group at risk of homelessness in Australia at the moment is older women. To allow the current situation to continue unchecked would be to turn our backs on retirees who are falling through the cracks right before our eyes.”

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