For many Australians in their 60s, the road to retirement isn’t quite mortgage-free – and this week brings a sharp reminder of just how expensive that can be.
From higher home loan repayments to rising health insurance premiums and everyday living costs, a “triple hit” is about to land on household budgets from April 1.
For those still paying off a home, the added pressure could mean hundreds of dollars extra each month – at a time when many are trying to wind back work or transition into retirement.
The latest interest rate rise is now flowing through to borrowers, with all four major banks passing on the Reserve Bank’s March increase in full.
That means anyone still carrying a mortgage will soon feel the impact.
According to Finder, a borrower with a $500,000 loan will be paying about $159 more each month. For a $750,000 mortgage, that jumps to $238, while those with a $1 million loan could be slugged an extra $318 monthly.
For Australians in their 60s – many of whom had expected to have their homes paid off by now – this is a significant shift. Recent data from the Australian Bureau of Statistics shows home ownership rates among older Australians are declining, while more people are carrying mortgage debt later into life than ever before.
At the same time, another unavoidable cost is about to rise.
Private health insurance premiums will increase from April 1, with an average rise of 4.41 per cent approved by Health Minister Mark Butler – the largest jump since 2017.
But that figure only tells part of the story.
Analysis from CHOICE shows some top-tier “gold” policies could rise by more than 13 per cent this year, with premiums on these policies having surged more than 70 per cent over the past five years.
For many older Australians who rely on higher levels of cover, that’s a substantial and ongoing cost increase.
Adding to the pressure, everyday expenses – from groceries to petrol and energy – remain elevated, creating a budget squeeze that could leave households feeling the pinch.
April 1 isn’t just another date on the calendar – it’s the key moment when health insurance price hikes take effect.
That makes right now the ideal time to review your cover and compare health funds.
Many insurers allow customers to prepay up to 12 months in advance at current rates, potentially avoiding the increase altogether. However, deadlines can fall days before April 1, depending on your fund and payment method.
Financial experts say it’s also a smart time to check whether your policy still suits your needs.
You may be paying for cover you no longer use – or missing out on better value elsewhere.
Importantly, even if you prepay, you’re not locked in. If you switch funds later, you can typically receive a refund for any unused portion.
This combination of rising mortgage costs and increasing health expenses highlights a growing reality – retirement is changing.
More Australians are:
Carrying debt into their 60s
Delaying full retirement
Managing higher healthcare costs
Which makes staying on top of household expenses more important than ever.
With multiple cost increases landing at once, taking a proactive approach – especially when it comes to major expenses like health insurance – could make a meaningful difference to your budget.
CLICK HERE to compare your Health Fund against others in the market.