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Rental property rarely used as retirement income tool

23 JAN 2020 • By Grace Ormsby • 2 min read • Hotspots

Only a tiny proportion of older Australians expect property income to be their main source of income in retirement, despite these people being among the least worried about their finances.

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A new report from National Seniors Australia has found that while a majority of Australians are concerned about outliving their retirement savings, there is a very small proportion who do not display such fears.

“Having a source of income that will last for life” is a key factor behind the lack of worry – with the group of people living on dividends, rent or business income depicted as “relatively unconcerned” regarding their savings situation.

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“These people are likely to have more wealth and be in a better financial position than most retirees,” the report outlined.

While one in 10 respondents (10.1 per cent) in the survey used for the report indicated that rent from investment property does already or would be a source of income in retirement for their household, just 1.6 per cent of the same respondent pool indicated that rent from investment property does or would be the main source of income in retirement.

The report also found that rates of worry around retirement savings and finances were 68 per cent higher among those who had yet to retire than those who had already transitioned beyond the work years.

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RELATED TERMS

Property
Property refers to either a tangible or intangible item that an individual or business has legal rights or ownership of, such as houses, cars, stocks or bond certificates.
Rent
Rent refers to the payment made by a tenant periodically to a landlord for the use and occupancy of a property.
Grace Ormsby

Grace Ormsby

AUTHOR

Grace is a journalist across Momentum property and investment brands. Grace joined Momentum Media in 2018, bringing with her a Bachelor of Laws and a Bachelor of Communication (Journalism) from the University of Newcastle. She’s passionate about delivering easy to digest information and content relevant to her key audiences and stakeholders.

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