The number of retirees who own their home outright has now halved in the past 20 years, according to census figures, which is quite a dramatic change.At the same time, the proportion of over-65 households with a mortgage has more than tripled, which is also quite an alarming change.
Even if the remaining mortgage debt is lower than the amount held in superannuation, it is still something of a financial planning nightmare, given that one of the major assumptions of the Australian retirement system is that retirees will be debt free and own their own house when they stop working.That assumption is looking increasingly out of date now as wannabe retirees and financial planners try to navigate a scenario of retiring with a significant mortgage or renting a home.
