Experts are imploring lawmakers to make downsizing more appealing for empty-nesters as fresh research has revealed the majority of older Australians are not interested in moving to a smaller home.
Despite AMP research proving older Australians want to help their children in today’s challenging economic environment, it found four out of five Aussies aged over 65 are not interested in downsizing.
Experts believe empty-nesters choosing to stay in their family homes is stopping young families from moving into bigger homes and means retirees aren’t getting a windfall of cash they can spend.
AMP Director Ben Hillier said the reluctance to downsize was rooted in bad policy settings.
“Basically any money you have tied up in the family home is exempt from the age pension eligibility rules,” Hillier said.
“However as soon as you release that equity and put it into another vehicle like superannuation or the bank, you start to get penalised in terms of how much age pension you’re eligible for.”
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The research showed that while putting their home on the market was not a priority for older Aussies, they were determined to help their children in other ways.
One in five older Australians would be willing to accommodate their family, while 15 per cent would pay their bills.
More than one in 10 would cut back on their spending, including holidays, but just seven per cent would sell their home and use some of the money to help their family.
Experts hope the research will trigger some changes from state and federal decision makers to encourage retirees to spend more of their wealth.
