Baby boomers are actually upsizing: IBISWorld
Despite widespread discussion about baby boomers downsizing, this generation, who make up 22% of the population, may not actually have any ideas of the sort, according to business information analysts at IBISWorld.
With baby boomers aged over 45 estimated to receive 15% of their income from superannuation, 14% from investments and 66% from government pensions, it’s notable that the family home isn’t counted when undertaking a pension asset test.
Baby boomer home ownership is at the high figure of 82.8% for over-65s, compared with 67.5% across all households. IBISWorld defines baby boomers as those born between 1946 and 1964.
IBISWorld Australia general manager, Karen Dobie, said that many are sitting on significant wealth in their home, while drawing a pension.
“Currently, a retiree investing all of their superannuation into housing can access the pension, while another retiree opting to rent will have to live off their superannuation. This is encouraging those who do not own houses to purchase property and those that already do to upgrade to more expensive properties to stay under the asset limit,” said Dobie.
She suggests that this will drive further activity in the real estate sector, with boomers to sell the family home or to purchase property closer to the city, coast of country.