Older Australians need to see fairer credit rules for retirees

Older Australians need to see fairer credit rules for retirees, the introduction of a Seniors Dental Benefits Scheme and greater support for people in aged care – all underpinned by a clear national plan for an ageing population, according to COTA Australia’s pre-Budget submission.

COTA Australia Acting Chief Executive Officer, Corey Irlam said COTA is urging the Federal Government to use the upcoming Budget to provide support that benefits all Australians, including older people.

Among the key recommendations in the submission is that the Federal Government ensures its regulations don’t act as a barrier to applying for credit in later life stages.

“Older Australians risk being unfairly locked out of credit simply because they are no longer in the workforce,” Mr Irlam said.

“The Federal Government needs to task ASIC and APRA with examining whether a dedicated retiree credit assessment standard is needed to ensure older Australians receive fair and consistent treatment when applying for loans.

Mr Irlam said fair access to credit could help older Australians manage major life events such as downsizing or supporting family members.

“This is about making sure people who have built financial security over a lifetime aren’t unfairly penalised because the system hasn’t caught up with how Australians live in retirement.”