Amanda Hardy Lai, Author at Retirement Essentials

What is a home worth? The retirement advantages of your real estate

When it comes to securing your financial future in retirement, the family home can be your most valuable asset. For Age Pension homeowners, owning a home offers not just the comfort of stability, but also tangible benefits for your financial situation. However, for retirees who don’t own their homes, the challenges of rental and housing affordability can significantly affect their retirement prospects. Today we explore the advantages for homeowners while acknowledging the difficult circumstances non-homeowners face in today’s housing market.

The benefits for homeowners

For retirees who own their homes outright or are close to doing so, there are many ways that your home can work for you in retirement. Research shows the family home is typically the largest asset for most Australian households, followed by superannuation (ACOSS & UNSW, 2020). Together, these two major assets – your home and superannuation – serve as the foundation of retirement security, with the Age Pension providing additional support to help ensure a comfortable lifestyle. The Age Pension system is designed with several benefits for homeowners, and if you’re lucky enough to own your own residence, these benefits can help stretch your retirement income further.

Age Pension means test exemption

One of the most significant advantages of homeownership is the exemption of your home from the Age Pension means test. This means that the value of your family home (and any mortgage loan on it) will not count toward the assessment of your assets when determining your eligibility for the Age Pension. For homeowners, this exemption can make a real difference in your overall entitlements, as the Age Pension is means-tested based on assets and income.

How to make the most of concession cards

by Amanda Hardy Lai | Commonwealth Seniors Health Card

More than a million Australian retirees are potentially eligible for the Commonwealth Seniors Health Card (CSHC) and haven’t applied. This card offers savings that can make a real difference – on prescription medicines, bulk billing, and even some state-based discounts. Some estimates suggest savings of up to $3,000 per year or $60,000 over a 20 year retirement.

But how much does the card really deliver? Some retirees expect thousands in discounts, only to find they don’t qualify for rebates in their state. Others are pleasantly surprised by unexpected perks that make a real difference. Knowing what’s available where you live can help you make the most of it.

For an update on the different concessions and health care cards, read our latest guide: Concession and health care cards update.

All about downsizing: What you need to know

by Amanda Hardy Lai | Retirement Advice

Downsizing is a major financial and lifestyle decision, offering the chance to free up home equity and boost your super balance in retirement. We regularly explore it because of the unique retirement planning opportunities it presents.

At its core, downsizing means selling your current home and purchasing a smaller, more affordable property. But it can also mean moving to a rental or a different living arrangement that better suits your needs in retirement.

Downsizer contribution rules allow eligible retirees to contribute up to $300,000 from the sale of their home into super, without impacting their usual contribution caps. This can help boost retirement savings in a tax-effective way, even for those who may not otherwise be able to contribute to super.

We know that downsizing isn’t for everyone. In some areas, selling and buying a smaller home leaves little financial gain, and moving costs add up. Research from the Australian Housing and Urban Research Institute (AHURI) shows that fewer than 20% of older homeowners who sell and buy another property actually reduce their housing equity.

That said, at Retirement Essentials, we’re often asked about the rules and eligibility for downsizing contributions to super.

Retirees want to understand how it works, what limits apply, and what impact it could have on their Age Pension Entitlements. So, if downsizing on your radar, here’s what you need to know about making a super contribution from the proceeds.