Census data reveals that a growing number of people are approaching retirement still burdened with mortgage debt.
Over the past two decades, the proportion of Australians aged 55 to 64 who own their homes outright has nearly halved.
A Digital Finance Analytics survey found that around three-quarters of retirees with a mortgage owe more than they hold in superannuation.
What’s Ahead?
This trend is expected to persist as the average age of first-time home buyers continues to rise. Experts warn this could lead to more retirees using their superannuation to pay off mortgages and depending more heavily on the age pension.
Finance analyst and founder of Digital Finance Analytics, Martin North, said more people were remaining in the workforce for longer because of "a significantly higher mortgage liability than they expected".
The impact was typically felt in Melbourne and Sydney but it was beginning to spread out, he said.
"I'm seeing people struggling in Hobart, Adelaide, Brisbane and Perth as well. So this is a national problem."
"This is a really critical factor, because it is having an impact on those parents, and it's changing their own retirement plans." - Martin North
Full Article: More Australians are reaching retirement with a mortgage as first home buyers get older - ABC News
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