Now, more than ever before, Australians want a secure retirement and the retirement income system is a major influence in determining whether they will have the income to achieve that goal and how comfortable they are as a result.
The Current Situation
Around 71 per cent of people aged 65 and over received Age Pension or other pension payments.
For most households aged 65 and over the family home is their main asset.
Superannuation makes up a small share of their net wealth, this will change as the superannuation system matures.
What is the retirement income system?
This three-pillar system consists of:
A means tested Age Pension
Voluntary savings, including home ownership
Your home is the most important component of voluntary savings and is an important factor influencing retirement outcomes and how people feel about their retirement. Home owners have lower housing costs, with the absence of a mortgage, plus it affords you an asset that you can draw down on.
However, in Australia, home ownership is declining. If home ownership continues to decline among younger Australians, there will be an increasing number of retirees in retirement who will rent. The challenge is that the retirement system favours home owners, such as asset draw down and exemption of principal residence from the Age Pension assets test.
Some FACTS about Home Ownership
In 1971, the home ownership rate for 30–34 year old Australians was 64%, decreasing to 50% in 2016. For 25–29, the decrease was similar, 50% in 1971, decreasing to 37% in 2016.
Home ownership rates have decreased among people nearing retirement. Since 1996, home ownership rates for the 50–54 age group have dropped from 80% to 74% over the 20 year period
There are a number of key learnings from the Retirement Income Review, below are two that we’ll discuss:
1. Great news, most Australians can expect a comfortable retirement
Most retirees today appear financially comfortable in their retirement, and most workers today can expect the same when they retire.
The Retirement Income Review defines an “adequate” retirement income as 65-to-75 per cent of workers’ pre-retirement, post-tax, earnings. The typical single worker can expect to replace 88 per cent of their pre-retirement earnings, and the typical couple 82 per cent.
What does this mean for you? Whilst the above sounds positive, if you’re expectations of your lifestyle in retirement are beyond just an ‘adequate’ retirement income, then you’re going to need to look for a supplementary source. Property investment is a key pathway to supplementing your retirement income with a new stream of revenue (plus an asset that you can leverage, sell or draw upon) for a more comfortable and secure retirement.
But for those who haven’t been fortunate enough or motivated to jump on the property ladder, the situation is far more challenging.
2. Renters might be in trouble when it comes to retirement
Our retirement income system isn’t delivering for everyone. Renters – particularly low-income renters – are at real risk of having an inadequate retirement income.
The Retirement Income Review found that about 60% of single retirees who rent their home are in poverty, compared to about 10% of single home-owner retirees. And that number will only grow as home ownership falls.
Owning a home has a positive influence on a person’s standard of living in retirement. Whereas, in retirement, renters have higher levels of financial stress as retiree renters have much higher housing expenditure than retirees who own their home.
So the takeouts are pretty clear:
Home ownership is declining
The two main assets held by people when they retire are their home and their superannuation.
Home ownership is an important influence on a person’s standard of living in retirement
So, what are the options to boost retirement outcomes?
Getting on the property ladder sooner and owning your own home
St Trinity Property Group and its affiliated entities, representatives, agents and related companies (collectively referred to as ST TRINITY PROPERTY GROUP) respect the privacy and security of your Personal Information, as defined below, and comply with the requirements of the Australian Privacy Principles under the Privacy Act 1988 (Cth).
WHAT PERSONAL INFORMATION DO WE COLLECT AND HOLD?
Under the Act Personal Information is defined as information or an opinion about an identified individual, or an individual that is reasonably identifiable, in whatever form and regardless of whether it is true or not (Personal Information). The Act also defines a subset of Personal Information as sensitive information (for example health records, racial or ethnic origin, religious beliefs, criminal records).
The types of Personal Information we collect and hold will depend on the circumstances of collection and on the type of service we are providing. For example, when we are engaged to sell a property, we may collect and hold Personal Information from both the seller and potential buyers such as name, address, email address, telephone numbers, employment details and details about their business.
HOW WE COLLECT PERSONAL INFORMATION
We may collect Personal Information about you directly when you deal with us over the telephone, send us correspondence (whether by letter, fax or email), have contact with us in person, visit our websites or complete hard copy or online forms.
There are also circumstances where we may collect Personal Information about you from someone else. For example, from:
• Market research companies contracted by us to obtain information so that we may improve and market our services;
• Your employer;
• Other agents and valuers who may be involved in the services we provide;
• Property developers who contract us to market properties;
• Publicly available information and databases;
• Any of the companies within the St Trinity Property Group (both local and overseas);
• and Anyone you have authorised to deal with us on your behalf.
We also automatically collect certain information when you visit our websites or our subscribers receive promotional emails from us via cookies and other tracking technology (such as web beacons), some of which may be capable of personally identifying you. Such information includes the type of browser and operating system you are using, your IP address and how you use our websites.
WHY WE COLLECT, HOLD AND USE PERSONAL INFORMATION
We generally collect, hold and use your Personal Information for the purposes for which it is provided to us (which will usually be obvious at the time of collection), related purposes or as permitted or required by law. Such purposes may include:
• Acting as agent for vendors or purchasers in relation to the sale of a property;
• Acting as agent for owners or tenants in relation to the leasing and or valuation of a property;
• Project management services;
• Structured advisory services;
• Town planning services;
• Capital allowances services and other consulting services in relation to the property market;
• Administration of our business, such as collection of overdue commissions or outstanding fees;
• Responding to client enquiries and communicating with you from time to time to maintain contact and keep you updated on the services you have requested;
• Forecasting future needs of our services and general quality assurance and training purposes;
• Engaging in legal proceedings and/or enforcing judgments and/or orders;
• Complying with the applicable legal or regulatory requirements and/or orders of competent authorities;
• Providing you with promotional and marketing information, including market research reports, newsletters, event invitations and/or property market information relating to our products and services which we think may be of interest to you; and Any other purpose identified at the time of collecting your Personal Information.
DISCLOSURE OF PERSONAL INFORMATION
We may disclose your Personal Information to third parties as may be necessary for any of the purposes stated in the above section. Such third parties generally include:
Our third party providers, contractors, consultants, agents and/or representatives (such as law firms, banks, financial institutions, insurers, IT providers, mortgage referral services providers and/or wealth management services providers) who provide services to us or on our behalf, including to:
• Conduct valuations;
• Assist with obtaining payment from creditors;
• Operate data centres;
• Conduct market research;
• Provide advice;
• Potential buyers, tenants, conjunctional real estate agents and brokers for the purpose for which the information was collected or for related purposes (for example to complete a transaction on your behalf or provide you with a service that you requested); Anyone you have authorised to deal with us on your behalf;
• Any of the companies within the St Trinity Property Group and their related companies; Government authorities, regulatory bodies, law enforcement agencies, courts, tribunals and/or parties to the legal proceedings where you have consented to this or we are required or authorised to do so by law;
• Debt collection agencies; and/or Any other third parties identified at the time of collection of your Personal Information.
DISCLOSURE OF PERSONAL INFORMATION OVERSEAS
Some of the third parties listed above to whom we may disclose your Personal Information are located overseas. For example:
Our information technology and business process service providers that are located in countries including (but not limited to) the Indonesia, India and Philippines; and Our overseas clients that are located in the same countries as the companies within the St Trinity Property Group.
However you acknowledge that, by agreeing to the disclosure of your Personal Information to these entities outside of Australia, we will no longer be required to take reasonable steps to ensure the overseas recipient’s compliance with the Australian privacy law in relation to your Personal Information and we will not be liable to you for any breach of the Australian privacy law by these overseas recipients. On this basis, you consent to such disclosure.
ACCESS, UPDATE AND CORRECTION OF PERSONAL INFORMATION
We take reasonable steps to ensure that the Personal Information we hold about you is accurate, complete and up-to-date. However, we also rely on you to advise us of any changes to your Personal Information. If you are able to access your Personal Information by logging on to an account you have with us, it is your responsibility to ensure your information is accurate, complete, relevant and up-to-date.
On request we will provide you with access to the Personal Information we hold about you, including for the purpose of correcting or updating that information, unless otherwise required or permitted by law.
There is no charge for making the request or giving the access to your Personal Information. We will deal with your request within a reasonable period after the request is made.
If we refuse to provide you with access we will provide you with a written notice that, at a minimum, outlines reasons for the refusal and the complaints mechanisms available to you.
If you wish to access the Personal Information we hold about you or to update or correct it, you can either do so by logging on to your account (if you have one) or contact us using the contact details provided below. We will require you to verify your identity and specify what information you require.
SECURITY OF PERSONAL INFORMATION
We take reasonable steps to protect any Personal Information that we hold from misuse, interference and loss and from unauthorised access, alteration and disclosure. For example, we implement IT security procedures including password protection, firewalls and site monitoring and we store your Personal Information on a secure server.we store your Personal Information on a secure server.
However, data protection measures are never completely secure and, despite the measures we have put in place, we cannot guarantee the security of your Personal Information. You must take care to protect your Personal Information (for example, by protecting any usernames and passwords). You should notify us as soon as possible if you become aware of any security breaches.
When you register as a member on our websites, you will be given a choice as to whether you want to receive e-mail messages from us, including newsletters, announcements and e-mail communications about our latest news, products or services. To the extent the relevant local law requires us to seek your consent, we will only send such messages to you if you opt-in. If you do not wish to receive direct marketing calls or materials, you may use the unsubscribe facility in the marketing communication or contact our Chief Privacy Officer using the channels prescribed below. Further, as a registered member with us, you can modify your choice at any time by accessing your registered account with us. We will stop using your Personal Information for direct marketing if you so request.
PRIVACY ON OUR WEBSITES
WHAT IF YOU HAVE A COMPLAINT?
PRIVACY & SITE CHANGES
OUR CONTACT DETAILS
• St Trinity Property Group
• Chief Privacy Officer