Retirees keen to remain home rather than downsize
Almost three quarters of older Australians wish to remain in their own home when they retire, contrary to expectations they will downsize, according to Household Capital.
The firm’s latest Retirement Outcomes survey found 73% of Australians over 60 wished to stay in their own home but confidence in having enough funds to do so was low.
Only a quarter of respondents said they felt ‘very confident’ that they would have sufficient funds to live well in retirement.
They indicated a median home value which was 4.5 times the value of their superannuation, rising to 6.2 times for residents in Sydney.
Some 67% of retirees owned their home outright and one in eight people had a mortgage.
While they were cautious over their retirement, few were keen to access their superannuation early with just 0.4% of those over 60 saying they would do so. This was because they wanted to minimise any negative impact in the face of low equity yields.
Dr Joshua Funder, chief executive of Household Capital, said: “Most older Australians wish to remain in their home throughout retirement, but 74% are not confident they have adequate retirement funding and no one wants to access their super prematurely.
“Older Australians are among the wealthiest in the world. They have been great investors and savers, diligently accumulating capital in their home. And almost everyone is aware of the role home equity can play in helping to fund their retirement.”
AUTHOR
Laura Dew
Recommended for you
As advisers risk losing two-thirds of FUA during the $3.5 trillion wealth transfer, two co-founders underscore why fostering trust with the next generation is vital to retaining intergenerational wealth.
As advisers seek greater insights into FSCP determinations, what are the various options considered by the panel and can a decision be appealed?
Amid the current financial adviser shortage, advice firm Link Wealth is looking to expand its financial literacy program for high school students across the country.
TAL Risk Academy has updated its range of ethics courses to help financial advisers meet their CPD requirements following adviser feedback, including interpreting FSCP determinations.
