Retirees wish to remain in their own home despite the value of their properties being significantly more than their superannuation balances, new research shows.
Household Capital's 2020 Retirement Outcomes survey reveals 73% of homeowners aged over 60 want to stay in their current home but the median home value is 4.5 times the value of their super balance.
For retirees living in metropolitan areas, the value of property is even higher with Sydney retirees living in their homes worth 6.2 times their superannuation balance.
Over 80% of the average respondent's wealth is held in the value of their home with 67% owning their home outright and 12.5% holding a mortgage.
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Almost all retirees are aware that the capital held in their property can be used to fund their retirement.
Household Capital chief executive Joshua Funder said the survey shows the family home is not only the preferred retirement housing but also the largest store of retirement savings.
"Most older Australians wish to remain in their home throughout retirement, but 74% are not confident they have adequate retirement funding and no one wants to access their super prematurely," he said.
Retirees have not been spared by the impact of the pandemic with half of those describing their retirement lifestyle as 'generous but secure' are now far less secure.
This is compared to nearly all of those identifying as 'frugal but secure' still feeling secure. However, just 0.4% of respondents plan to access their superannuation early.
"Older Australians are among the wealthiest in the world. They have been great investors and savers, diligently accumulating capital in their home. And almost everyone is aware of the role home equity can play in helping to fund their retirement," Funder said.