A survey finds around three-quarters of retirees with a mortgage owe more than they have in superannuation. More people are facing their retirement years with a home loan and the trend is expected to continue as the age of first home buyers rises.
More people are facing their retirement years with mortgage debt, according to census data. Over the past 20 years, the number of Australians aged 55 to 64 who owned their homes outright had almost halved.
Linda fears she will have to sell and leave her home of more than 20 years if she can't find a way to pay down her mortgage. About three-quarters of the retirees with a mortgage owe more than they have in superannuation, and more than 50 per cent of 55-65-year-olds expect to sell their property or use their superannuation to repay their mortgage.Finance analyst and founder of Digital Finance Analytics, Martin North, said more people were remaining in the workforce for longer because of "a significantly higher mortgage liability than they expected".
That could, ironically, leave the 'mums and dads' more vulnerable to a potential drop in house prices, if they delay paying down their own home loans and then need to sell.While some older Australians may be thinking of using their superannuation to pay off their mortgage, for others that wasn't an option.
The federal government's 2023 Intergenerational Report echoed these concerns, warning of the risks posed by retirees still burdened by mortgage debt.
Retirement Retire Mortgage Housing Housing Market Property Superannuation First Home Buyers Retirees Home Loan Debt
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