Yahoo Finance Why this pensioner thinks Australia needs more social housing
Rocco Caruso is a 72-year-old pensioner from Adelaide, who receives $460 a week.
And, it’s actually not a bad gig for Rocco, who is single, and since his liver transplant, has been on a mainly meat-free diet, meaning he saves on groceries.
“I actually manage to save around $5,000 a year from my pension. I’ve saved up enough to cover the cost of my funeral,” he told Yahoo Finance.
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But for Rocco, budgeting is easy.
“I was in business for a very long time before I went on the pension, so I know how to budget. Others don’t.”
On top of that, Rocco now lives in government housing, which means his rent costs him around $105 per week.
“I pay electricity and gas, but I keep my blinds open everyday so I don’t need to use the lights as much.”
Other than his rent, his car and his groceries, Rocco doesn’t have many other expenses, which puts him ahead of the rest, he says.
“People are going to charities for food because they’ve taken out mortgages, and then they’re forced to take out insurance. If something goes wrong in your home like your water or your gas system, you need to fix it. When you’re a pensioner, it’s unaffordable.”
Rocco thinks social housing is the key to helping pensioners stay afloat, and it’s something that Mission Australia’s CEO James Toomey agrees with.
Social housing can keep pensioners afloat
Toomey told Yahoo Finance that 2016 Census data indicated 19,000, or close to one in six people experiencing homelessness are over 55 years of age.
It’s an increase of 27.7 per cent from the 2011 Census, he said.
“Older people face some of the same drivers of homelessness everybody else, including lack of appropriate and affordable housing and lack of financial stability. However, these factors can impact on older people in different ways, due to changing housing needs and changing financial circumstances later in life.”
This comes as the Australian Housing and Urban Research Institute found Australians aged 55 and over have seen their mortgage debt soar 600 per cent since 1987.
The study also found older Aussies’ mortgage debt to income ratio has tripled, from 71 per cent to 211 per cent in the same time period, reflecting a huge increase in repayment risk and mortgage payment difficulties.
And, when older Aussies faced mortgage payment difficulties, their mental health scores reduced by 2 points for males and 4 points for females.
“We know that the ageing population is set to double between 2010 to 2050, so action needs to be taken now to reduce the numbers of older people being pushed into homelessness,” Toomey said.
And Toomey said the high cost of housing is placing financial strain on older people, particularly those who are renting.
“For people who are surviving on social security payments like the age pension, there’s not much left over after paying the rent each week.”
“Of course having appropriate and affordable accommodation is part of the immediate solution. We know that with access to permanent and secure housing the majority of older people will be able to live independently with minimal support.”
“Considering the current waiting list, more social and affordable housing options for older people, including for single older women, are vital.”
Toomey said investment in social housing for older people is “urgently needed”, and said the government must build 60,000 additional social housing dwellings specifically for older people.
Newstart is putting strain on some pensioners
Rocco’s daughter is a single mum with two children aged 10 and 13, and she’s on Newstart payments.
Single parents on Newstart receive $601.10 per fortnight, which equates to around $300 per week.
That, Rocco says, is just not enough.
“Newstart payments are a horror. It’s criminal,” he said.
Rocco currently contributes to his daughter’s finances to ensure she stays afloat.
“I have to drop in and help her. We’ll go hungry for our kids if we have to,” he said.
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