The Growing Debt Burden of Retiring Australians
Challenges, Solutions & Opportunities
Older Australians are retiring with unprecedented levels of housing debt, forcing superannuation to do double duty—fund retirement and clear housing loans. This white paper reframes retirement planning through a household balance sheet lens and sets out practical ways super funds, advisers, and policymakers can integrate home equity release alongside super and the Age Pension to improve outcomes—without forcing people to sell their homes in retirement.
Download the white paper (PDF)
Read the executive summary · Book a briefing with Homesafe · Media Release
Why this matters
-
Unpaid housing debt at the time of retirement is now common: For median home-owning near-retirees, the odds of still having housing debt at retirement are roughly 50–50.
-
System tension: The stock of outstanding home loans is now near the size of APRA-regulated super assets, straining the traditional “pay off the home, live on super” model.
-
Super trade-off: Many retirees are using lump sums to extinguish housing debt, reducing their future Net Pension-Generating Super (i.e., the super actually left to produce income).
-
What works: Integrating home equity release into advice/tools can lift replacement rates; in our case study, clearing housing debt via equity release (rather than super) increased monthly discretionary income by ~70% while keeping super invested.
Who should read this
Superannuation trustees & product leaders (Retirement Income Covenant), policy makers & regulators, financial advisers & retirement specialists, and journalists covering housing, retirement income, and ageing policy.
What’s inside
-
Section 1: Australia’s household balance sheet—property vs super
-
Section 2: The rise of later-life mortgages and why it’s happening
-
Section 3: Housing, super & the Age Pension—toward a fourth pillar
-
Section 4: Reframing the home in retirement (cashflow, bequests, aged care)
-
Section 5: Home equity release—HEAS, reverse mortgages, and debt-free equity release
-
Section 6: A practical total balance-sheet approach + case study & actions for funds
About the authors
Harry Chemay—30 years across financial planning, asset consulting, fintech and superannuation product design.
Sahil Kaura—20+ years across institutional investing and wealth technology; product, risk and distribution leadership.
Supported by Homesafe Solutions Pty Ltd
For over two decades, Homesafe has helped older Australians unlock home equity without taking on debt, supporting fair, transparent, debt-free access to housing wealth.
Citation
-
Suggested citation: Chemay, H. & Kaura, S. (2025). The Growing Debt Burden of Retiring Australians: Challenges, Solutions and Opportunities. Credere Consulting Services. Sponsored by Homesafe Solutions Pty Ltd
Media kit
-
Press enquiries: pia@theshapeagency.com.au
