Housing urged to be included in ‘balance sheet’ view of retirement

Yasmine Raso

Senior Journalist

1 May 2026

Homesafe Wealth Release, the ‘debt-free’ alternative to a reverse mortgage, has urged policymakers, super funds and the advice industry to adopt a new method of defining wealth in retirement beyond superannuation and investment that includes home ownership.

The call comes as the trend of Australians retiring with mortgage debt continues to rise and housing wealth is now considered the “single largest asset for most older households”, forcing a re-think of the traditional framework to better reflect modern retirement.

Homesafe Wealth Release chief executive, Dianne Shepherd, said this paved the way to introduce the concept of ‘retirement capital’.

“Retirement planning in this country has become narrowly focused on what sits in a super fund or an investment account,” she said.

“But retirement capital is the entire balance sheet a household has built over a lifetime and for most Australians, the largest line on that balance sheet is the family home.

“Too often, retirement planning focuses on what happens outside the front door. Superannuation balances, investment portfolios and income streams are examined closely, while the home is treated as something separate or untouchable.

“The result is a generation of Australians who are asset-rich but cash-constrained with their retirement income options assessed as though their largest asset does not exist.”

Shepherd noted that while Australia’s superannuation system is crucial to retirement, it only presents a “two-dimensional solution – accumulation followed by drawdown” that doesn’t typically take into account a holistic view of older Australians’ wealth.

The call to reassess retirement wealth also comes as Australians live longer in retirement, cost of living pressures squeeze retiree budgets and fears mount over the ability of superannuation to sustainably fund retirement.

“Super is a vital part of the system, but it is only one part,” Shepherd said.

“Discussions about retirement readiness rarely consider the home, even though it often represents more wealth than everything else combined.

“A balance sheet approach does not prescribe a single pathway. It does not suggest every homeowner should access the equity in their property, nor does it diminish the role of strategies such as downsizing or drawing on superannuation. It simply broadens the lens through which retirement decisions are made.

“There is a long-held view that the home must be preserved at all costs, typically to pass on as inheritance. That remains important for many families.

“But the home can also support financial security, lifestyle and independence during retirement itself. These decisions are not mutually exclusive and they are more balanced when households understand their full position.”

Homesafe is urging regulators and industry participants to rethink the traditional ‘accumulation-and-drawdown’ framework and include home ownership in planning and funding for retirement.

“Australia’s retirement system continues to evolve, but public understanding has not fully kept pace,” Shepherd said.

“The next step is for the industry to catch up with how households actually hold their wealth and to help Australians plan with their whole balance sheet in view, not just the part that sits in a super fund.”