The reduction in the number of financial advisers and the rising cost of advice have made it more difficult for retirees with debt to access help as they move out of the workforce, according to a home equity release provider.
Homesafe chief executive Dianne Shepherd said many people entering retirement with mortgage debt, limited superannuation and rising cost‑of‑living pressures had been priced out of the support they need during a financially complex phase of their lives.
“We are seeing more Australians than ever reaching retirement still carrying a mortgage, with modest super balances and increasing longevity risk – yet access to affordable, high‑quality financial advice has never been harder to secure,” Shepherd said.
“The combination of rising debt, volatile markets and a shrinking adviser workforce means many retirees are being forced to make life‑changing financial decisions without the guidance they deserve.”
She added some older Australians are having to manage superannuation drawdowns, tax strategies, age pension eligibility, interest rates, mortgage repayments and home equity in relation to their plans at the same time the advice sector has been reduced in number to 15,000 practitioners from around 30,000 in 2019.
“Retirement security is not just about how much you’ve saved. It’s about how all your financial pieces – property, debt, super and everyday living costs – fit together,” she noted.
“Retirement today is far more complex than it was a decade ago. The burden of decision‑making has shifted almost entirely to individuals, yet the support system around them is shrinking.”
She pointed out while superannuation assets were Australia’s second-largest household asset class, they may not be enough to negate the impact of ongoing housing debt on retirement lifestyles and home‑equity solutions had a role to play in improving outcomes.
“For many older Australians, the family home is their most valuable asset – yet they often feel trapped by mortgage repayments or cash‑flow pressures,” she said.
“Homesafe provides a safe and certain way to unlock equity without taking on debt, allowing retirees to improve their financial well-being with confidence.
“Every Australian deserves the opportunity to retire with dignity and financial security. We cannot allow a shrinking adviser workforce and rising advice costs to leave older Australians behind.”
