If you’re like most Australians over 60, the family home is more than just a roof over your head. It’s your biggest asset, your comfort zone, and the keeper of countless memories. But for many, it also hides a frustrating truth: you might be asset rich but cash poor.

You’re not alone. Across the country, thousands of retirees find themselves in the same situation. The bills keep coming, the cost of living keeps rising, and super doesn’t always stretch as far as you’d hoped. The good news is, your home can help you turn that around without having to sell up or move away from the place you love.

Let’s look at the main ways Australians are making their homes work for them in retirement.

1. Downsizing: A Fresh Start (with less maintenance and fewer rooms to clean

Selling the family home and moving somewhere smaller is the traditional option and it can be a great one. You could free up equity, cut back on maintenance, and even tip a little extra into super under the government’s Downsizer Contribution Scheme. Of course, downsizing also means saying goodbye to familiar streets, neighbours, and memories. And with property prices rising across many regions, finding something suitable and affordable isn’t always easy. So while downsizing can give you breathing room, it’s worth weighing up the emotional and financial trade-offs before taking the leap.

2. Reverse Mortgages: Staying put while boosting your cash flow

A reverse mortgage lets you borrow against your home’s value without having to make regular repayments. You stay in your home, and the loan (plus interest) is paid back later, usually when you sell, move into aged care, or pass away. It’s a flexible way to top up your retirement income, cover home improvements, or manage unexpected costs like healthcare. Best of all, Australian reverse mortgages are tightly regulated and include a “no negative equity guarantee”, which means you can never owe more than your home is worth. Used wisely, this can be a practical way to enjoy life today without sacrificing tomorrow.

3. Home Reversion Schemes: Sharing the value, not the debt

If you don’t like the idea of borrowing, a home reversion scheme might appeal. In simple terms, you sell a share of your home’s future value to a provider in exchange for a lump sum or steady payments. You still live there for as long as you like, but when the home is eventually sold, the provider receives their agreed share of the sale proceeds.It’s another way to access the value in your home, though it does mean giving up part of its future value, something to think about if leaving an inheritance is important to you. Or, If your home has great appreciation potential, it could be a fairly expensive exercise. The problem with this option is that you do not really know what it might be costing you or your beneficiaries.

4. The Family Option: Keeping it in the family

Some retirees work out private equity arrangements with their children or relatives. This might involve selling them a small share of the home or agreeing on a financial contribution in exchange for future inheritance adjustments. If you’re considering this, make sure everyone gets legal and financial advice first. It’s the best way to protect relationships and ensure everyone’s on the same page now and in the future.

5. Mixing and Matching: Finding what works for you

There’s no one size fits all answer. Many retirees find that combining a few strategies works best. For instance, you might downsize to a more manageable home and then use a small reverse mortgage to supplement your income. The key is to take your time, ask questions, and get advice from professionals who specialise in retirement finance. A good adviser will help you understand the long term impacts, including how your decisions affect Age Pension eligibility and estate planning.

You’ve worked hard. Now let your home return the favour.

You’ve spent a lifetime building security now it’s time for that security to work for you. Whether you want to cover the rising cost of living, make home improvements, or simply enjoy the retirement you’ve earned, there are options available. The important thing is to stay informed, seek advice, and remember: your home isn’t just where you live, it’s the key to living the life you deserve.

Chris Moutzikis is a Trsansformational Banking and Finance Leader.