The number of mature age Australians carrying mortgage debt into retirement is soaring.
And on average each mature age Australian with a mortgage debt owes much more relative to their income than 25 years ago.
Microdata from the Bureau of Statistics survey of income and housing shows an increase in the proportion of homeowners owing money on mortgages across every home-owning age group between 1990 and 2015. The sharpest increase is among homeowners approaching retirement.
More mortgaged for longer
For home owners aged 55 to 64 years, the proportion owing money on mortgages has tripled from 14% to 47%.
Among home owners aged 45 to 54 years, it has doubled.
- ^ survey of income and housing (www.abs.gov.au)
- ^ Source: Authors’ own calculations from the Surveys of Income and Housing (www.abs.gov.au)
- ^ has doubled (www.ceda.com.au)
- ^ Sources: Treasury, ABS, Committee for Economic Development of Australia (www.ceda.com.au)
- ^ potentially shortening (www.abs.gov.au)
- ^ even though they did not move house (www.ahuri.edu.au)
- ^ prolong working lives (www.ahuri.edu.au)
- ^ 29% (www.abs.gov.au)
- ^ 25% (www.pc.gov.au)
- ^ over one-half (opendata.cbs.nl)
- ^ ABS 6238.0 Retirement and Retirement Intentions (www.abs.gov.au)
- ^ adds to psychological distress (www.sciencedirect.com)
- ^ fourth pillar of the retirement incomes system (www.ceda.com.au)
- ^ reducing poverty in old age (link.springer.com)
- ^ age pension at relatively low levels (melbourneinstitute.unimelb.edu.au)
- ^ boost the age pension (www.ahuri.edu.au)
- ^ half a million (www.ahuri.edu.au)
- ^ on rental housing assistance (journals.sagepub.com)
- ^ unlikely to ever leave housing assistance (journals.sagepub.com)
- ^ demand for housing assistance (theconversation.com)
- ^ inquiry into the retirement incomes system (www.afr.com)
- ^ Home ownership foundations are being shaken, and the impacts will be felt far and wide (theconversation.com)
Authors: Rachel Ong ViforJ, Professor of Economics, School of Economics, Finance and Property, Curtin University