A new report by the Retirement Living Council shines a light on the fastest-growing cohort of homeless Australians and presents policy solutions to stop more women over the age of 55 from slipping into homelessness.
Rebecca* is 67 and still works full-time as a receptionist in Queensland. Divorced twice, Rebecca has just $150,000 in savings and superannuation. Even with a flawless rental record, Rebecca has moved four times over the last five years – and each time the cost of moving has eaten into her savings. While Rebecca dreams of owning her own home, the barriers set by the banks are too high. Her age, low wages and other lending criteria mean Rebecca is unlikely to ever realise her dream.
Fiona* is a 52-year-old divorced mother of three living in regional New South Wales with two school aged children. Fiona studied law as a mature-age student, but her career has been constrained caring responsibilities. With a weekly income of $1,000 but less than $100,000 in superannuation, Fiona does not receive any financial support from the father of her children and has, at times, paid him child support. Fiona may receive a small inheritance soon, but given rising house prices, her age and income history, this money will not be enough to meet the banks’ borrowing hurdles.
These are just two stories that show the human face of a hidden housing crisis. Retirement living: A solution for older women at risk of homelessness underscores the size of the challenge: as many as 240,000 women aged over 55 are considered at risk of homelessness.
“These are women who have done everything that society has asked of them, yet they are in housing limbo because they have too much money to qualify for social housing and too little money to buy a house,” says Retirement Living Council president Marie-Louise MacDonald.
For example, to register for social housing in Victoria an applicant must have less than $34,656 in savings and non-preserved superannuation funds. Even with very modest superannuation levels, most retired older women are ineligible for social housing. Many more would struggle to meet basic bank lending criteria to access a home loan.
“Their age is often a big barrier to securing a housing loan, and the pressure of paying rent quickly eats into modest retirement savings,” Ms MacDonald says.
But there are solutions. Retirement communities are a viable long-term and secure housing option for the ‘missing middle’, as they provide safe and affordable homes and are designed to support people as they age.
Take the example of a retirement village in the Sydney suburb of Marrickville, where studio apartments and small one-bedroom independent living units range between $200,000 and $250,000 – well below the $638,750 median price for one-bedroom units in the suburb. The mostly female residents have secured the benefits of home ownership for a fraction of the upfront cost of buying an apartment in the same suburb.
The report makes eight key recommendations, including an education campaign, women’s housing portal and engagement officer. It also recommends broadening the eligibility criteria for Commonwealth Rent Assistance and introducing government-backed loans.
In the report’s foreword, Age Discrimination Commissioner Dr Kay Patterson AO congratulates the retirement living industry for “tackling this complex issue” and commend its “genuine commitment in providing and suggesting affordable housing solutions for older women at risk of homelessness”.
Download Retirement living: A solution for older women at risk of homelessness.
*Not her real name