27% of working Australians see family home as means to fund retirement living: Vanguard annual report

The report also states 28% of retired Australians believe their family home can potentially fund aged care if needed.  

With the penetration rate of retirement living 5.7% of the over 65 population, according to the Property Council of Australia, there is optimism of maintaining or increasing that penetration rate from a new report by Vanguard Investments Australia. 

The 'How Australia Retires' report, a survey of more than 1,800 people, states19% of working-age Australians view their family home mainly as a source of funding, willing to sell it or use home equity release schemes or reverse mortgages to fund their retirement. In contrast, only 7% of retired Australians echoed this sentiment.  

In a boost to the adoption of the Aged Care Taskforce’s recommendations, just 12% of working Australians saw their family home as an inheritance for their beneficiaries or children.   

The Property Council’s Retirement Living Council believes to maintain existing market demand, the retirement living industry requires 67,000 units to be built by 2030, or 11,000 a year.  More than 260,000 people live in 2500 retirement communities across the country, according to the RLC. 

Of most concern is 32% of Gen Xers (born mid-sixties to late-seventies) believe they will be in debt in retirement, with them still paying off a mortgage. 

The Australian Government has lowered the age limit to 55 to allow homeowners to access downsizer contributions (up to $300,000 from the proceeds of the sale of your home into your superannuation fund) to encourage people to sell the family home.  

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