Family home is untapped wealth
The family home is untapped wealth and has emerged as an unexpected financial lifesaver to fund income savings gaps for retirees, according to Homesafe Solutions.
The firm said it was even more important for financial planners to recognise the importance of the family home by taking a total asset approach to financial planning.
Homesafe's managing director, Peter Szabo, said: "Irrespective of how diligently and conservatively retirees manage their finances, the reality is that some are heading towards an outcome in which superannuation balances and savings nest eggs will run out long before death".
"As a result they will have no option but either to access the wealth tied up in the family home or government for assistance via the Age Pension and related services for their remaining years," he said.
Szabo said seniors needed to broaden their horizons away from super, savings, and the Age Pension, and to consider options such as the family home.
However, he noted that the family home was often deliberately omitted from the total assets approach because of a deep emotional attachment.
"With strong house price appreciation in recent years rendering the home a substantial asset for many senior Australians, the wealth tied up in the family home is too important an asset not to be included in a total asset approach to long-term financial sustainability," Szabo said.
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