Reverse mortgages are key for senior women

by Darren Moffatt on May 1, 2013

  • Sumo

It’s long been known that this generation of senior women have less money for their retirement than their male counterparts. There are several good reasons for this, including the fact that superannuation was only mandated at current levels in 1993.

Also, the proportion of women who worked in past generations was much lower than today, so many female retirees simply had no opportunity to accumulate retirement savings. During their so-called ‘working years’, many either stayed at home to raise the family, or if they did work, it usually for less than what men earnt.

You’d like to think this scenario has changed, but recent shocking statistics from the Human Rights Commissioner show there is, shamefully, still a long way to go on the equality front.

This great blog post summaries the challenges that even working women today will face in retirement. It’s unfair & needs to be fixed.

But for those women who are already retired on a pension or limited income, the house is very often the only significant asset. Increasingly women are using the equity in the home used to ‘bridge the income gap’ via a reverse mortgage. I know from SEQUAL statistics and many years for direct experience, that after married couples single retired women are the biggest group of reverse mortgage borrowers. Very often, they have the most pressing need.

Let’s hope that government & society correct these injustices, & that future generations of women have access to the same opportunities & retirement savings as men.

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