A home loan used to set you up for retirement, but now many Australians face working beyond retirement age or retiring with significant mortgage debt. As home buyers get older and rising house prices and living costs require bigger mortgages, "forever loans" are becoming more common. This shift in how Australians view mortgages requires new strategies like rent-vesting or buying with family or friends, while financially preparing for retirement is essential in this challenging landscape.

As the golden years approach, many Aussies find themselves contemplating a significant life change: downsizing the family home to better align with retirement goals. Whether it’s driven by financial considerations, lifestyle preferences, or simply a desire for a more manageable space, downsizing can be a strategic move that enhances retirement. Before deciding to downsize, however, it’s important to understand the pros and cons, why downsizing might make sense, and what factors to consider as you embark on this journey.

Home ownership for Australians has long been considered a key milestone in life, and it plays an important role when it comes to boosting retirement income too. Homeowners considering downsizing to a smaller home in their retirement years, could give their Super a last-minute boost by adding up to $300,000 tax-free from the sale of a property. Find out more about Downsizer Contributions, the eligibility criteria, and how pension entitlements could be impacted.

Over the last few years, Self-Managed Super Funds (SMSFs) in Australia have become more popular, as more people are choosing to have greater control and more flexibility over their retirement savings. By establishing an SMSF, investors are able to manage their own super portfolio instead of it being managed by a fund manager. And while there are certainly benefits to this type of investment, it’s vital investors are clear on what the pitfalls are to avoid.

One of the most common questions we get asked is whether it’s best to pay off a mortgage first or salary sacrifice and pay extra into a superannuation fund, or to do both. While the answer to this question is never straightforward and will depend on things like lifestyle, financial position, and time of life, salary sacrificing can be a tax-effective strategy when implemented correctly. To help you decide, here’s an explanation of what it means and examples of how both options work.

How Australians live together is changing, as social and demographic factors have led to many more people living in households with more than one generation of adults. Called “The Sandwich Generation”, this group of people face considerable financial and mental strain, “sandwiched” between the challenges of raising their own children or grandchildren while caring for ageing parents. If you find yourself in this situation, here are some tips that could help.

Government is proposing a raft of initiatives aimed at supporting pensioners into smaller homes to help free up more housing for younger home buyers. The “right-sizing” Bill, which is yet to be passed through Parliament, would make downsizing for older Australians a whole lot easier, giving pensioners more flexibility to find a suitable home, and potentially freeing up more housing for younger families. Find out more about how the Bill could benefit older Australians if it gets passed.