To downsize or not to downsize
In this episode, we explore what home really means in later life — when freedom, lifestyle, and financial reality start pulling in different directions.
What does home mean in this next chapter — when the kids have moved out, your lifestyle is changing, and you’re caught between wanting more freedom and knowing your finances need to stretch further?
In this episode of Prime Time, we go deep into one of the most complex, emotional and quietly politicised issues facing Australians over 60: housing in later life.
Joining me is Dr Michael Fotheringham, Managing Director at the Australian Housing and Urban Research Institute (AHURI) — someone who understands the numbers, the policy levers, and the very human realities behind where we live as we age.
We cover a lot:
From the emotional tug-of-war around downsizing, to the growing number of older renters struggling in a volatile market. From financial policy incentives that barely nudge the needle, to the unspoken pressure many feel to vacate their family home “for the next generation.”
We ask hard questions:
Are we actually making it possible to downsize in Australia, or just asking people to?
Is it fair — or effective — to expect older Australians to unlock supply in the housing market?
And what does security look like when you're over 60 and renting?
This episode is for anyone rethinking the role of “home” in the second half of life — whether you own, rent, or something in between.
LISTEN TO THIS EPISODE OF THE PODCAST HERE:
Highlights of this episode:
How older Australians are living now: What the data shows about homeownership, renting, and the shifting landscape for people over 60
The downsizing dilemma: Why so many want to move — but don’t
Easier said than done: The emotional and practical barriers to downsizing in Australia
Emotional architecture: What really keeps people in homes that no longer fit their lives
Financial pressure vs emotional pull: What’s driving the family home decision in later life
The quiet pressure to move on: Are older Australians being subtly nudged to downsize — and will it actually help the housing crisis?
The policy puzzle: What the Incentivising Pensioners to Downsize legislation does — and doesn’t — deliver
Superannuation strategy: How downsizing connects with super contributions — and who actually benefits
Renting in later life: Why renting after 60 is harder than it looks, and what it means for security in retirement
What needs to change: How housing policy, planning and public expectations can better support older Australians
Preorder your copy of Prime Time: 27 Lessons for the new midlife
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If you’re in your late 40s, 50s, 60s — even 70s — and you’re navigating work, money, health, purpose, or just figuring out what’s next… this is for you.
It’s a guide for living fully in the best years of your life — with practical, honest advice for redesigning this chapter with confidence, energy and real financial clarity.
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It would re helpful if they changed the 10year time you have to have lived in your house before using the downsizer contribution.
People over 60 can have sudden health issues that require a quick decision to change your housing.
Hi Great Podcast.
A couple of areas to think about if you do downsize is the impact on the age pension.
Especially if you are in receipt of it
Recapping:
If you are in receipt of the age pension and you downsize you may increase your assessable assets that Centrelink assess - this may impact the amount of age pension you receive.
For example a single retiree on the Full aged pension (approx 30K pa) with less $314K assessable assets receives the full age pension. Should they downsize and free up 200K, their assessable assets are now 514K - their age pension entitlement may fall by $15,900, so they now only receive $14,100 pa. By waiting another few years to do the down-size (and drawing down on assessable assets) you may be able to keep assets below $314K once have completed downsize and still be entitled to the full age pension
Alternatively, if you need to down-size due to needing more income - you could consider the Government pension loan scheme as an alternative to down-size.
https://www.servicesaustralia.gov.au/home-equity-access-scheme
Cheers