Retirement
How Australians are faring in saving for retirement
Nearly 5.5 million Australians struggle to meet their future needs in retirement. How do your savings stack up?
How Australians are faring in saving for retirement
Nearly 5.5 million Australians struggle to meet their future needs in retirement. How do your savings stack up?
The state of play for retirees
Research conducted by Roy Morgan suggests the average gross wealth (total assets excluding owner-occupied home) is $299,000. The average debt level for the same group is $27,000, reducing the net wealth of soon to be retirees to $272,000.
Household Capital chief executive officer Josh Funder believes funding for retirement is a significant issue for a majority of Australians.
“Roy Morgan’s figures tie in with our research; for many Australians, compulsory super started too late into their working lives,” Mr Funder said.
More than 5.5 million so-called Australian Baby Boomers (those people born between 1946 and 1964) have entered or are about to enter retirement.
“As subsequent waves of Baby Boomers approach retirement, inadequate funding looms as a major socioeconomic problem that must be addressed,” Mr Funder said.
Where has all the money gone?
For most Australians, the majority of their wealth is tied up in their family home. At retirement, the family home plus superannuation may be worth seven figures, but this is locked away.
“In fact, there’s nearly $1 trillion in untapped home equity owned by Australian retirees. Given that most retirees wish to stay in their own home as they age, this untapped savings is a valuable resource that could be used to improve retirement funding,” Mr Funder said.
New options on the market
With so much capital being left in the family home, Mr Funder believes Australians need to utilise their home equity, albeit in an efficient, responsible and sustainable way.
“Clearly, a new and innovative approach is required to meet this major unmet community need and delivered in the context of financial advice and long-term retirement planning,” Mr Funder said.
Drawbacks of reverse mortgaging
According to the ASIC, there are a few drawbacks to new options on the market, like reverse mortgages.
By taking out a reverse mortgage, individuals can face financial difficulties later in life because of interest rates, increasing debt and the effects of compound interest if the value of the property does not rise.
RELATED ARTICLES
About the author
About the author
Retirement Planning
Retirement happiness on the rise, but cost-of-living worries cloud confidence
Australians aged 60 and over are generally positive about their retirement, but concerns about the rising cost of living continue to impact their lifestyle and financial security, according to the ...Read more
Retirement Planning
Australia's retirement system nears tipping point as withdrawals surpass contributions
State Street has unveiled a significant new research series, "Reimagining Retirement," which highlights a critical juncture for Australia's retirement system. The study, released on 1 April 2026, ...Read more
Retirement Planning
Online wills initiative aims to boost superannuation and retirement engagement
In a bid to increase engagement with superannuation and retirement planning, Aware Super has expanded its online wills service, following a successful pilot program. The initiative, launched in ...Read more
Retirement Planning
New digital platform revolutionises retirement planning for Aware Super members
A groundbreaking digital platform by Aware Super is transforming the way retirees plan and manage their pensions, with significant results already seen in the pilot phase. The tool, named Retirement ...Read more
Retirement Planning
The retirement mortgage squeeze: how one bank turned a demographic risk into a strategic edge
An increasing share of Australians are entering their 60s still paying off mortgages, just as living costs and interest charges stay stubbornly high. For banks, super funds, retailers and ...Read more
Retirement Planning
The retirement mortgage crunch: what it means for banks, retailers and policy in Australia
A growing share of Australians are carrying mortgages into their 60s and beyond, colliding with persistent cost-of-living pressures and a “slow grind” macro outlook. This isn’t just a social story; it ...Read more
Retirement Planning
Majority of Australians still unsure about their retirement prospects
A recent survey conducted by MFS Investment Management® has shed light on the ongoing uncertainty faced by many Australians regarding their retirement plans. Despite a slight increase in confidence ...Read more
Retirement Planning
Wage growth steadies as businesses navigate economic challenges
In a sign that the Australian labour market may be finding equilibrium, wage growth has stabilised this quarter, according to Employment Hero's latest data. This development comes as employers ...Read more
Retirement Planning
Retirement happiness on the rise, but cost-of-living worries cloud confidence
Australians aged 60 and over are generally positive about their retirement, but concerns about the rising cost of living continue to impact their lifestyle and financial security, according to the ...Read more
Retirement Planning
Australia's retirement system nears tipping point as withdrawals surpass contributions
State Street has unveiled a significant new research series, "Reimagining Retirement," which highlights a critical juncture for Australia's retirement system. The study, released on 1 April 2026, ...Read more
Retirement Planning
Online wills initiative aims to boost superannuation and retirement engagement
In a bid to increase engagement with superannuation and retirement planning, Aware Super has expanded its online wills service, following a successful pilot program. The initiative, launched in ...Read more
Retirement Planning
New digital platform revolutionises retirement planning for Aware Super members
A groundbreaking digital platform by Aware Super is transforming the way retirees plan and manage their pensions, with significant results already seen in the pilot phase. The tool, named Retirement ...Read more
Retirement Planning
The retirement mortgage squeeze: how one bank turned a demographic risk into a strategic edge
An increasing share of Australians are entering their 60s still paying off mortgages, just as living costs and interest charges stay stubbornly high. For banks, super funds, retailers and ...Read more
Retirement Planning
The retirement mortgage crunch: what it means for banks, retailers and policy in Australia
A growing share of Australians are carrying mortgages into their 60s and beyond, colliding with persistent cost-of-living pressures and a “slow grind” macro outlook. This isn’t just a social story; it ...Read more
Retirement Planning
Majority of Australians still unsure about their retirement prospects
A recent survey conducted by MFS Investment Management® has shed light on the ongoing uncertainty faced by many Australians regarding their retirement plans. Despite a slight increase in confidence ...Read more
Retirement Planning
Wage growth steadies as businesses navigate economic challenges
In a sign that the Australian labour market may be finding equilibrium, wage growth has stabilised this quarter, according to Employment Hero's latest data. This development comes as employers ...Read more
