Governments should support seniors

Governments should support seniorsAustralian governments should support the desire of seniors to live independently in smaller homes by removing penalties for those who wish to downsize, research by the National Seniors Productive Ageing Centre recommends.Financial disincentives such as the age pension assets test and stamp duty, as well as lack of available age-appropriate housing, remain impediments to residence downsizing for hundreds of thousands of senior Australians, said the Retirement Living Council in its response to the research.The report, released on 19 June, revealed that while seniors are reluctant downsizers, 30 per cent of those surveyed were considering downsizing. On a national scale, this equates to more than one million people, but many seniors say they are unable to move to a smaller residence because of barriers put in place by governments.Of those barriers, 20 per cent of all seniors and 30 per cent of age pensioners reported that having the full proceeds of the sale of the family home included in the pension test was a discouraging factor in deciding whether or not to move.According to the research, removing such disincentives would reduce the number of senior Australians who feel trapped in an unsuitable home. The research shows that the cost and labour associated with maintaining a large family home and yard are the main reasons that seniors consider downsizing.Policy interventions to reduce financial barriers, such as the Pensioner Duty Concession Scheme in the ACT and the pilot scheme proposed by the Labor Government in 2013, may help to encourage downsizing. But they would be most effective if coordinated with other incentives to promote independent living for senior Australians in smaller homes built for their needs, such as residences with built-in grab rails and other mobility aids.To download the report, go to: http://www.productiveageing.com.au