The significant retirement cost awaiting more Australian homeowners
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The significant retirement cost awaiting more Australian homeowners

Experts say it’s the reason additional superannuation payments are so important

By Bronwyn Allen
Thu, Jun 20, 2024 12:58pmGrey Clock 2 min

An increasing number of Australians expect to still be paying off a mortgage or renting in retirement, a new survey by superannuation provider Vanguard shows. The findings mirror trends revealed by the Australian Institute of Health and Welfare last year. The AIHW says homeownership rates are gradually decreasing among people nearing retirement. Since 1996, homeownership among 50 to 54-year-olds has fallen from 80 percent to 72 percent in 2021, according to Census data. The number of people aged 55 or older who are renting also rose from 17.5 percent in 1996 to 20.6 percent in 2021.

Vanguard’s How Australia Retires report shows nearly one in three working Australians today expect they will still be paying off their home loans in retirement. The expectation is higher among younger generations, with 45 percent of Gen Zs (aged 18 to 27 years) expecting to be doing so compared to 29 percent of millennials (aged 28 to 42), 32 percent of Gen Xers (aged 43 to 57) and 17 percent of baby boomers (aged 58 to 77).

Vanguard says almost one in five retirees today are renting and 8 percent are still paying off a home loan. The likelihood of retiring with a mortgage or renting is significantly higher for those who are not in a relationship compared to those with a partner, at 31 percent and 8 percent, respectively.

Achieving debt-free home ownership is especially important given so many Australians intend to remain in their homes as long as possible. The survey found 56 percent of retired Australians and 46 percent of workers want to remain in their family home for life and/or want to pass it on to relatives in their Wills. This suggests holding onto the family home in retirement is a priority, even if that means continuing to pay interest on debt.

Daniel Shrimski, Managing Director of Vanguard Australia, said housing tenure was a “sleeper issue”in retirement.

“Housing is either the largest or second largest asset held by Australian households, so it’s also one of the most important contributors to a secure retirement,” he saidWe tend to presume we’ll be homeowners and mortgage free – but having unresolved debt or needing to draw down on savings to pay rent is likely to be a big financial burden for many, especially if full-time paid work is no longer an option.”

Mr Shrimski said this is why it’s so important for Australians to prioritise superannuation savings, yet 49 percent of workers have not made additional contributions to their superannuation and 27 percent have no intention of doing so, despite the generous tax concessions available. The report also found less than onethird of workers felt confident in their understanding of superannuation.

Many Australians intend to use at least part of their super to pay off mortgage debt. The survey asked Gen Xers – the next generation to retire – about their plans to pay off their mortgage. About 38percent said they intend to keep paying their mortgage through retirement, while 25 percent intend to use their super to pay it off in one hit.



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Corey Pavin on Taking a Shot at Making Golf Greens More Green
By JOHN SCOTT LEWINSKI
Wed, Jun 26, 2024 4 min

Though golf courses offer long acres of lush grass, tall trees and rippling ponds, they’re not the most popular venues among environmentalists. Citing their effect on wildlife and the potential impact on a venue’s water table, those worried about conservation and sustainability find much to dislike on any 18-hole tract.

For more than a decade, 1995 U.S. Open champion Corey Pavin has worked to improve golf’s relationships with the world hosting it. Known as one of the more amiable and self-effacing players on the PGA Tour (and, currently, the Champions Tour), the 64-year-old native of Southern California remains one of the leading proponents of sustainability in golf.

During preparations to play the 2024 Senior PGA Championship at Michigan’s Harbor Shores—a course built on a reclaimed industrial dumping ground in Benton Harbor—Pavin explored what brought him into the sustainability movement and why he continues to push more environmentally responsible golf courses.

Penta : You claimed a Major Championship, won 15 times on the PGA Tour and captained a Ryder Cup team during four decades of professional golf. How did you find an interest in sustainability along the way?

Corey Pavin: I grew up in California, so recycling was always a big deal there before the movement expanded across the United States and around the world. So, I came into golf already aware of the need to recycle and look after the environment.

What brought you into a leadership position working toward environmental sustainability in golf?

I do most of this work due to my association with Dow Chemical. I’ve been with them for 15 years now, and they started a big program for sustainability and recycling. They’ve done a lot to make me aware of what needs to be done and helped me to reduce my own carbon footprint. … I also worked with the nonprofit GEO Foundation for Sustainable Golf, which is dedicated to making golf and the golf community ecologically friendly.

Have you found there to be tension between the sport of golf and the environmentalist movement?

I knew growing up the environmental effects of golf and golf courses was a huge concern and a cause of a lot of conversation. There were debates over the chemicals used on a course and how they can affect groundwater and other elements.

I think a lot of strides are being made with what materials get used on a golf course with an eye toward what effect they could have on the environment. There’s been a lot of work in the last two decades to make courses less harmful.

What advancements have golf operations made in course design, building, and management?

First of all, there’s been a push for years now with course designers to avoid bringing in any outside species such as grass or other plants that could change the ecology of an area. You’re seeing so many more courses now that use only native elements. There’s also been a lot of strides made on how courses are maintained, what grasses they use, and how the greens crews treat the grasses.

Is it difficult to balance environmental factors with efforts to provide a quality golf course?

You want to design and build a quality course and keep it in good shape, but we have the means now to eliminate negative environmental impact from a golf course being built or operating. For example, concepts such as using recycled, non-potable water for the grass or choosing salt-resistant grasses that can be fed with brackish seawater keep fresh water preserved and entirely off the course.

Beyond water usage, what positive effects can a modern golf course have on the environment?

You also have to consider the adjacent land near a course. The presence of golf near a forest or marshland can lead to an effort to preserve that space that wasn’t a priority earlier.

Are you seeing efforts to update or reimagine golf courses built before the environmental movement came to the fore?

Yes, there are so many modification ideas a golf course can use to limit or reduce the amount of grass that needs to be watered. I’m seeing courses add natural waste areas of plants that require very little water or more sandy areas that require no water at all. Over the last decade, I’ve seen courses all around the world shifting to those designs. Beyond saving water, those ideas also reduce the amount of necessary maintenance and save energy.

Way back when, crews used to just bulldoze everything and transform an area into a course without giving thought of what that could do. Once it became clear that we could build golf courses that can involve more of the natural habitat and disturb much less of the natural environment that was already in place, I think it became obvious there was no reason to design or build courses any other way.

As a player, does it just make you happy seeing these sustainable changes?

I love seeing it, not just because I’m aware of how important clean water is, but because I’ve always liked golf courses that have a natural look to them.

The 2024 Senior PGA Championship was at Harbor Shores this year—a course developed on wetlands reclaimed from an industrial waste site. Could we see golf actually restoring the environment in cases like we find in Benton Harbor, Mich.?

I think that’s a great example of responsible course building and management. Initially, [Harbor Shores] was more a case of recycling and reclamation, but it operates now within those wetlands as a sustainable model. We can see more cases of dump sites becoming courses because you’re dealing with land that can’t really be used for much else. Once the ground is cleaned and treated, I can’t think of any better place to build a golf course because just the act of creating the venue cleans that garbage from the land.

We can now make golf courses that look like they were always supposed to be there from the beginning.

This interview has been edited for length and clarity.

MOST POPULAR
11 ACRES ROAD, KELLYVILLE, NSW

This stylish family home combines a classic palette and finishes with a flexible floorplan

35 North Street Windsor

Just 55 minutes from Sydney, make this your creative getaway located in the majestic Hawkesbury region.

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