Family home may help fund superannuation
The family home may for many hold the overlooked value when it comes to fund or financially support their retirement savings, an option strengthened by constant tinkering and growing complexity of superannuation, according to Homesafe MD.
The provider of the retirement solutions noted that the ongoing fiddling with the legislation around superannuation fuelled a lack of confidence in the system and drove Australians to seek other alternatives despite the federal government's objectives to strongly encourage people to fund their own retirement through industry, retail, corporate and SMSF structures.
Peter Szabo, Homesafe Solutions managing director, said that all these issues would rather turn Australians to the family home as an option "seeing it as a better, simpler and relatively more secure alternative".
As such, the overlooked value stored in the family house, an equity that can be accessed to supplement the underfunded superannuats and low income retirees, was expected to gain more significance.
"Continuing socio and economic uncertainty is the new norm for today's working Australians that these factors will impact on their ability to contribute sufficiently to superannuation," he said.
"Add in constant government tinkering with the superannuation system and owning a family home can prove to be a much needed asset lifesaver for ongoing financial wellbeing when it is time to face an underfunded retirement."
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