The ultimate goal is for the next generations to not even need an aged pension and then remove it all together. That's essentially why superannuation was created. Also needs to happen, we just cannot afford it with an ageing population or we would have to increase population exponentially to create more workers. Is it fair to the current generations? No not really but too bad
On the OP comments - reverse mortgages in theory are a fantastic idea. Helps economy as older people have more money to spend, stops generational wealth transfer which is creating a huge divide rich v poor and would put a small dent in price growth
These loans used to be offered by the big 4, i think they shut them off even before the royal commission which tells you something. A lot of things like elder abuse/mental faculties and the need to use property to try and fund nursing homes, then theres probate disputes and beneficiaries on the wills etc going after the banks - hence the massive rates.
@pintohoo - I think what
@craig57 was trying to say is if you own a $5 million house and compared to a $250K house and a reverse mortgage of a loan to value ratio of say 30% you would have a lot more cash available. Leverage off assets first and then aged pension when you run out. How you make that into a policy I'm not sure but i get where he is coming from.
