Wealth gap draws retired renters into poverty

Older people who rent are a key concern of National Seniors Australia (NSA). Rising rents have hit renters hard, none more so than those on fixed incomes such as the Age Pension.

That’s why we’re putting renters at the centre of our Better Housing campaign. Government financial support for renters – the Commonwealth Rent Assistance (CRA) – is not keeping pace with rising rental costs. And the gap is widening.

We’re calling on the Federal Government to increase the maximum rate of CRA and that the indexation of CRA be tied directly to the housing component of the Consumer Price Index (CPI) – an inflation indicator – rather than overall CPI.

We’re also pushing for the creation of a capital grants scheme for the construction of rental housing suitable for older people, which incorporates universal design principles. This will reduce older renters’ risk of falling, hospitalisation, or premature entry into residential care.

It is pleasing that another key advocacy group, Super Consumers Australia (SCA), has also identified the rising cost of renting as an explosive issue for non-home owning retirees, further exposing their financial vulnerability.

Having published its 2026 Retirement Savings Targets for Renters report, SCA is calling for urgent intervention to fix the inadequate levels of rent assistance.

Report findings

The report found rising rents meant older Australians who don’t own their own home will need twice as much superannuation to enjoy the same retirement lifestyle as homeowners.

A typical single retiree paying rent needs $659,000 in super, compared to $322,000 for a homeowner. A couple who rents needs $786,000 combined in super compared to $432,000 combined in super for a couple who owns their home.

“Telling renters to simply ‘save more’ isn’t the solution to this problem,” SCA CEO, Xavier O’Halloran, said.

“… renters are at a real risk of retirement disaster if the government doesn’t act. Long term solutions need to focus on getting more people into affordable housing. But we’ve got a crisis facing retirees right now, Commonwealth Rent Assistance has not kept pace with actual rents,” he said.

The detailed SCA figures are available here.

Australian Institute of Health and Welfare data shows there were more than 325,000 Age Pensioners receiving CRA in June 2025, and 32% (105,000) were still in rental stress (spending more than 33% of their income on rent) after receiving that assistance.

Echoing NSA’s recommendation that more age-friendly and suitably designed rental housing should be built to take renters out of a housing market many cannot afford, SCA also supports the need for Federal Government action to get more people into affordable housing to avoid giving older renters what it describes as “an impossible financial challenge in retirement”.