The significant retirement cost awaiting more Australian homeowners
Experts say it’s the reason additional superannuation payments are so important
2 min
An increasing number of Australians expect to still be paying off a mortgage or renting in retirement, a new survey by superannuation provider Vanguard shows. The findings mirror trends revealed by the Australian Institute of Health and Welfare last year. The AIHW says homeownership rates are gradually decreasing among people nearing retirement. Since 1996, homeownership among 50 to 54-year-olds has fallen from 80 percent to 72 percent in 2021, according to Census data. The number of people aged 55 or older who are renting also rose from 17.5 percent in 1996 to 20.6 percent in 2021.
Vanguard’s How Australia Retires report shows nearly one in three working Australians today expect they will still be paying off their home loans in retirement. The expectation is higher among younger generations, with 45 percent of Gen Zs (aged 18 to 27 years) expecting to be doing so compared to 29 percent of millennials (aged 28 to 42), 32 percent of Gen Xers (aged 43 to 57) and 17 percent of baby boomers (aged 58 to 77).
Vanguard says almost one in five retirees today are renting and 8 percent are still paying off a home loan. The likelihood of retiring with a mortgage or renting is significantly higher for those who are not in a relationship compared to those with a partner, at 31 percent and 8 percent, respectively.
Achieving debt-free home ownership is especially important given so many Australians intend to remain in their homes as long as possible. The survey found 56 percent of retired Australians and 46 percent of workers want to remain in their family home for life and/or want to pass it on to relatives in their Wills. This suggests holding onto the family home in retirement is a priority, even if that means continuing to pay interest on debt.
Daniel Shrimski, Managing Director of Vanguard Australia, said housing tenure was a “sleeper issue”in retirement.
“Housing is either the largest or second largest asset held by Australian households, so it’s also one of the most important contributors to a secure retirement,” he said. “We tend to presume we’ll be homeowners and mortgage free – but having unresolved debt or needing to draw down on savings to pay rent is likely to be a big financial burden for many, especially if full-time paid work is no longer an option.”
Mr Shrimski said this is why it’s so important for Australians to prioritise superannuation savings, yet 49 percent of workers have not made additional contributions to their superannuation and 27 percent have no intention of doing so, despite the generous tax concessions available. The report also found less than one–third of workers felt confident in their understanding of superannuation.
Many Australians intend to use at least part of their super to pay off mortgage debt. The survey asked Gen Xers – the next generation to retire – about their plans to pay off their mortgage. About 38percent said they intend to keep paying their mortgage through retirement, while 25 percent intend to use their super to pay it off in one hit.
This stylish family home combines a classic palette and finishes with a flexible floorplan
Just 55 minutes from Sydney, make this your creative getaway located in the majestic Hawkesbury region.
A Sydney site with a questionable past is reborn as a luxe residential environment ideal for indulging in dining out
2 min
Long-term Sydney residents always had handful of not-so-glamourous nicknames for the building on the corner of Cleveland and Baptist Streets straddling Redfern and Surry Hills, but after a modern rebirth that’s all changed.
Once known as “Murder Mall” or “Methadone Mall”, the 1960s-built Surry Hills Shopping Centre was a magnet for colourful characters and questionable behaviour. Today, however, a $500 million facelift of the site — alongside a slow and steady gentrification of the two neighbouring suburbs — the prime corner property has been transformed into a luxury apartment complex Surry Hills Village by developer Toga Group.
The crowning feature of the 122-apartment project is the three-bedroom penthouse, fully completed and just released to market with a $7.5 million price guide.
Measuring 211sqm of internal space, with a 136sqm terrace complete with landscaping, the penthouse is the brand new brainchild of Surry Hills local Adam Haddow, director of architecture at award-winning firm SJB.
Victoria Judge, senior associate and co-interior design lead at SJB says Surry Hills Village sets a new residential benchmark for the southern end of Surry Hills.
“The residential offering is well-appointed, confident, luxe and bohemian. Smart enough to know what makes good living, and cool enough to hold its own amongst design-centric Surry Hills.”
Allan Vidor, managing director of Toga Group, adds that the penthouse is the quintessential jewel in the crown of Surry Hills Village.
“Bringing together a distinct design that draws on the beauty and vibrancy of Sydney; grand spaces and the finest finishes across a significant footprint, located only a stone’s throw away from the exciting cultural hub of Crown St and Surry Hills.”
Created to maximise views of the city skyline and parkland, the top floor apartment has a practical layout including a wide private lobby leading to the main living room, a sleek kitchen featuring Pietra Verde marble and a concealed butler’s pantry Sub-Zero Wolf appliances, full-height Aspen elm joinery panels hiding storage throughout, flamed Saville stone flooring, a powder room, and two car spaces with a personal EV.
All three bedrooms have large wardrobes and ensuites with bathrooms fittings such as freestanding baths, artisan penny tiles, emerald marble surfaces and brushed-nickel accents.
Additional features of the entertainer’s home include leather-bound joinery doors opening to a full wet bar with Sub-Zero wine fridge and Sub-Zero Wolf barbecue.
The Surry Hills Village precinct will open in stages until autumn next year and once complete, Wunderlich Lane will be home to a collection of 25 restaurants and bars plus wellness and boutique retail. The EVE Hotel Sydney will open later in 2024, offering guests an immersive experience in the precinct’s art, culture, and culinary offerings.
The Surry Hills Village penthouse on Baptist is now finished and ready to move into with marketing through Toga Group and inquiries to 1800 554 556.
This stylish family home combines a classic palette and finishes with a flexible floorplan
Just 55 minutes from Sydney, make this your creative getaway located in the majestic Hawkesbury region.
