A baby boomer has revealed he may have to work for many years to come as he struggles to pay off his mortgage, revealing he has “no superannuation” to depend on.
Sky News host Peta Credlin says Labor are looking to bring changes to superannuation which would bring about taxation to “unrealised gains”.
“There is changes Labor are bringing in relation to superannuation, they said they would not touch super prior to the election,” she said.
“It looks like they have got a stumbling block … this is about taxing unrealised gains.”
Speaking on SBS Insight last week, city planner Angus Witherby, 64, said after “two very expensive divorces” which dramatically set him back, he now has less than $3,000 in super.
“I’m not wealthy, I have no superannuation, I’m dependent on my own business for income because there’s nobody else who will give me a job,” he said.
“At this stage, best projections are I’m going to have to work until 75 to pay off the mortgage and other debt.”
Angus Witherby, 64, has revealed he may need to work until age 75 to pay off his mortgage. Picture: SBS Insight.
Mr Witherby said he borrows from his children but hopes to pay off his mortgage to leave them with no burden. Picture: SBS Insight.
Mr Witherby said with his first divorce he lost an investment property, his house and a share portfolio and came out with a “negative net worth” in 2005.
He said while he wished he could financially support his children, his circumstances have actually meant he has had to borrow from them.
“And in fact I have had to borrow from my children … particularly my son … because there was simply no money and there was no choice,” he said.
When asked what retirement will look like given his financial situation, he replied, “the pension, if I’m well enough and can keep working enough to pay the mortgage”.
The Association of Superannuation Funds of Australia reveals single retirees live on about $51,278 per year and couples need about $72,148. Picture: NCA NewsWire / Nicholas Eagar.
“If I can’t pay off the house, I am at the moment one serious illness away from homelessness,” he said.
“I have no security in my future.”
According to the Association of Superannuation Funds of Australia, retirees are facing immense pressure when it comes to affording insurance, electricity and food.
ASFA revealed in the December quarter 2023, the Retirement Standard had reached a record high, with couples requiring $72,148 per year to live comfortably and single retirees needing about $51,278 to maintain their lifestyle.
This meant the annual increase was about 3.5 per cent.
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According to ASFA CEO Mary Delahunty, the inflated prices of essential goods and services meant retiree budgets have been under “substantial pressure” for the past two years.
“Fortunately, we are seeing price increases in the key categories that make up retiree budgets – home and content insurance, fruit and vegetables, fuel and electricity – begin to ease,” she said in a statement in March.
She also noted the cost of medical services increased 1.2 per cent in the December quarter, with the cost of domestic travel and accommodation rising by 3.9 per cent over the summer.
This comes after another baby boomer shared his struggles of being a landlord while owning five investment properties worth $3 million, which were paid for from his superannuation.
Citing body corporates, land tax, new upgrades of apartments and tenants failing to pay their rent, 61-year-old Craig Doyle said he and his wife were losing $15,000 a quarter running the properties and had been forced to sell.