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Energy poverty and retirement income sources in Australia

Feb03
CEPAR

A recent paper published by CEPAR researchers Dr Jane Fry and Associate Professor Jeromey Temple of the University of Melbourne, with Professor Lisa Farrell of RMIT University, examines the effect of retirement income sources on energy poverty in Australia and finds that differences in retirement income arrangements lead to energy poverty differences.

The new study investigates drivers of energy poverty inequalities among retirees in Australia, where there is a difference in retirement income sources between publicly funded Age Pensioners, Part-pensioners and Self-Funded Retirees leading to differences in energy poverty beyond income effects.

According to the paper, energy poverty is a particular problem for older people due to fixed and often relatively low incomes and the need for additional energy due to underlying health conditions. This may have cost implications for the healthcare sector if the health of older people deteriorates due to energy poverty.

Analysing longitudinal data from the HILDA survey from 2005 to 2019, the researchers find that Age Pensioners are worst off and Self-Funded Retirees best off on the main measures of energy poverty.

However, wealth, assets, social connections and good health may reduce subjective energy poverty, according to the paper.


Jane M. Fry, Lisa Farrell, Jeromey B. Temple (2022): Energy poverty and retirement income sources in Australia, Energy Economics, Volume 106, 105793, 2022.