Will you be renting in retirement?
The concept of retirees as mortgage-free homeowners is a problem for our current welfare system. Thanks to poor housing affordability, people who do own property are generally buying later in life and paying off their mortgage for longer. The sharpest rise in mortgage liability has been among the people aged 55-64. There are concerns about the impact this trend will have on home owners’ super savings at retirement and their greater reliance on the aged pension as a result. There are also concerns for a new generation of retirees facing a life as tenants and the impact it could have on their overall retirement budget. This article presents the idea that renting can actually offer greater flexibility to retirees seeking the right kind of environment for their new lifestyle.