The Grattan Institute’s recent report, “Simpler super: Taking the stress out of retirement”[1] highlights that many Australians find retirement planning complicated and expect it to be financially stressful.  A 2020 CHOICE survey found that 61% of respondents did not expect their retirement to be financially stress free.

The Grattan Institute notes that “How they use their super in retirement is one of the biggest decisions Australians will ever make.” Their analysis of ABS data shows that in 2019-20, single Australians retired with an average superannuation balance of approximately $125,000 and couples retired with around $300,000.

When planning for retirement, it is essential to take a holistic approach and consider all “pillars” of the retirement income system.  In addition to superannuation, Australian retirees have access to the age pension, non-super savings and the wealth built up in their home.

The Overlooked Pillar: Housing Wealth

For most retirees, the family home is their largest store of wealth, yet it is the pillar most often overlooked in retirement planning. The average superannuation balance at retirement does not come close to today’s median home value of $800,000 in Australia[3]. For many retirees who own a home, the wealth stored in the home is far more significant than their superannuation, and for many it will continue to be so.

The non-financial benefits of home ownership compared with renting are major and include the psychological comfort of staying in one’s home, being able to remain a part of one’s community, continuity of medical and other service providers, security of tenure and the right to make modifications to the home if needed.

Considering the family home as an accessible financial asset, rather than solely as a place to live, expands the range of options available to senior Australians and has the potential to reduce financial stress.

Accessing Home Equity with Homesafe Wealth Release®

The innovative solution, Homesafe Wealth Release®, makes it possible for homeowners aged 60 and over to access housing wealth - without taking on debt.

Homesafe Wealth Release® enables senior homeowners to access a lump sum payment in exchange for selling a share of their home's future sale proceeds, while retaining the right to live in their home for life. Since 2005, Homesafe has helped retirees fund their retirement, for various purposes, including:

• covering unexpected expenses,
• managing living costs, and medical bills
• paying off debt
• providing financial support to family members.

Key Features That Provide Homeowners with Confidence

Naturally, retirees may have reservations about accessing their home equity, but Homesafe Wealth Release offers several protections:

• Control over the proportion sold; the homeowner chooses the share of their home’s future value to sell, up to a maximum 65%. Homesafe will never be entitled to more than the agreed share.
• Secure legal structure; the transaction is a property contract which provides legal protections for the homeowner. Independent legal representation is required.
• Right to live in the home for life; homeowners retain full occupancy rights for the rest of their lives.
• No accumulating debt; unlike a capitalising interest loan, the homeowner’s protected share of the equity in the home will not be eroded and there is certainty around the minimum share of the home’s future value the homeowner, or their estate, will retain when the home is eventually sold.

A Trusted Option for a Financially Secure Retirement

As noted by the Grattan Institute, deciding how to use superannuation in retirement is one of the biggest decisions Australians will make. Similarly, choosing to access housing wealth is a significant decision that requires careful consideration.

“Homesafe Wealth Release® is a trusted option for thousands of Australians, enabling them to enjoy a more comfortable and financially secure retirement,” says Dianne Shepherd, Managing Director of Homesafe.

For many retirees who own a home, their housing wealth is likely to exceed their superannuation balance at retirement. Accessing this housing wealth – debt free – can reduce financial stress in retirement.

[1] Coates, B., Moloney, J., and Suckling, E. (2025). Simpler super: Taking the stress out of retirement. Grattan Institute.

[2] CHOICE (2020) Retirement planning survey.

[3] CoreLogic figures 31 December 2024 for dwellings from the 2nd of January 2025 release of CoreLogic’s “Home Value Index” report.