A retirement industry specialist has urged Australians to rethink retirement planning by looking beyond superannuation and investments.
Homesafe Wealth Release CEO Dianne Shepherd has called for a rethink of the way Australians approach retirement capital, arguing that traditional retirement planning frameworks no longer reflect the realities of modern retirement.
Shepherd noted that traditional retirement planning approaches have centred on superannuation and investment balances.
However, with a growing number of Australians entering retirement with mortgage debt – and housing wealth typically their largest asset – she argued the traditional framework no longer reflects the realities of modern retirement.
“Retirement planning in this country has become narrowly focused on what sits in a super fund or an investment account,” Shepherd 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.”
Earlier this year, the lender reported that Australians aged 55–64 are entering retirement with significantly higher housing debt than previous generations at the same age, with many continuing to carry mortgages into their 60s and 70s.
“Too often, retirement planning focuses on what happens outside the front door,” Shepherd said.
“Superannuation balances, investment portfolios, and income streams are examined closely, while the home is treated as something separate or untouchable.”
As a result 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, according to Shephard.
“Super is a vital part of the system, but it is only one part,” Shepherd added.
“Discussions about retirement readiness rarely consider the home, even though it often represents more wealth than everything else combined.”
A balance sheet approach
For Shephard, who notes that retirement now commonly spans 25 to 30 years, rising cost-of-living pressures and uneven superannuation balances are prompting a more practical conversation about how retirement is funded and sustained.
“A balance sheet approach does not prescribe a single pathway,” she added
“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,” Shepherd said. “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.
“Australia’s retirement system continues to evolve, but public understanding has not fully kept pace. 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.”
[Related: Older Aussies carrying record mortgage burden into retirement]
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