SFA043 Renting in Retirement: Is it possible? (833 words)

As the cost of housing continues to rise in Australia, particularly in across the country's capital cities, retirees are becoming more likely to rent throughout retirement. And if retirees aren't renting, they may end up willing on an asset to beneficiaries that is not free of debt. This article compares the average incomes of Australian retirees and analyses how renting may impact their retirement lifestyle.

As record numbers of Australians transition into retirement, considering your cost of living and comparing it to your expected average annual retirement income is a crucial step in retirement planning. For many Australians transitioning into retirement, the increasing cost of housing continues to be a burden on people's ability to pay off their property in their lifetime. This can lead to a few common scenarios — selling the property prior to retirement and renting, continuing to pay down the mortgage and leaving beneficiaries with an asset that has debt owing, or renting due to lack of affordable properties on the market. Naturally, this is a stressful situation for anyone to think about, whether you're about to retire or you're a young adult watching your parents plan for retirement.