For many Australians, the family home is more than bricks and mortar. It’s security, memories, and the reward for decades of hard work.
But for a growing number of retirees, it’s also something else: money sitting quietly in the background, while day-to-day living costs keep rising.
A new report from Deloitte has put a spotlight on just how much is tied up in Australian homes – and how little of it is being used.
According to the research, Australians over 60 are collectively sitting on trillions of dollars in home equity. A significant portion of that – around $600 billion – could potentially be accessed if needed.
And yet, very few people are doing so.
It’s a familiar story for many in later life: the house is paid off, but cash flow can still feel tight. Whether it’s covering bills, helping the family, travelling, or simply enjoying retirement a little more, the pressure is real.
For those who do tap into their home equity, the reasons are often practical and relatable.
Some use it to renovate or maintain their home. Others clear lingering debts, upgrade the car, or fund a long-awaited holiday. Increasingly, people are also using it as a way to ease the transition into retirement – particularly before super or the Age Pension fully kicks in.
Importantly, many are doing this carefully and on their own terms. Some even repay the money early when their situation improves.
For many, it simply hasn’t been part of the conversation.
There’s also a lingering fear about what it means. Some worry they could lose their home or leave nothing behind for the family.
But modern equity release options, including reverse mortgages, come with protections. You remain the owner of your home, and safeguards like the “no negative equity guarantee” mean you can’t end up owing more than the home is worth.
Still, it’s not for everyone – and it shouldn’t be rushed into.
The key takeaway isn’t that you should act – it’s that you should be aware.
For decades, retirement planning has focused almost entirely on superannuation and the Age Pension. But for many Australians, the home is their largest asset – and ignoring it could mean overlooking an option that might improve quality of life.
Even if you never use it, understanding what’s possible puts you in a stronger position.
At Starts at 60, we know these decisions can feel complex – and sometimes overwhelming.
That’s why we’re launching a new service to help you better understand reverse mortgages and equity release, with clear, independent information tailored to Australians over 60.
If you’d like to register your interest and be notified when the service launches, you can contact us at community@startsat60.com.
In the meantime, you can also find trusted, government-backed information at MoneySmart.
Because when it comes to your retirement, having the right information can make all the difference.