Retirees living in homes valued at over $1mil receive more than $6bn in age pension payments

A landmark review into the age pension and superannuation is underway, with some suggesting retirees with valuable property should be ruled ineligible to receive the pension.

Currently, retirees living in homes valued at $1 million or more are receiving more than $6.3 billion a year in age pension payments.

There are almost 30,000 aged pensioners living in homes worth over $2 million.

3AW’s finance guru, Scott Haywood, said there is merit to the argument, but it’s not politically viable.

“About 400,00 people on the pension, if their home was included, would lose their entitlements,” he told Tom Elliott.

“From a political point of view it would be suicide.”

Scott Haywood called for housing to be taken into account when determining pension eligibility, but said the $2 million figure floated is too low.

“Some of these people who do have these massively valued houses … shouldn’t be entitled to it,” he said.

“But I think two million is a little low.”

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Image: Moment Open