I was recently featured in an article by industry publication ifa discussing whether Australians should count the family home as part of their retirement planning.

It’s an interesting conversation – particularly as more people approach retirement with mortgage debt and rising living costs.

While there are different views on the role the family home should play, I believe the most important thing is understanding what matters to each individual and building a strategy around that.

The family home is different

One of the points I made in the article is that most Australians don’t view their home as a financial asset in the same way they view their superannuation or investments.

For many people, their home represents security, stability and independence.

As I told ifa:

“I think most Australians view their home as a non-financial asset, especially in retirement. Given the need to have somewhere to live, this seems to me an appropriate perspective.”

While the family home may appear on a balance sheet, the emotional and practical role it plays in retirement is often very different from other assets.

Mortgage debt is changing the conversation

That said, retirement planning is becoming more complex.

An increasing number of Australians are reaching retirement with an outstanding mortgage, which creates additional decisions and trade-offs.

Some people may choose to work longer to pay down debt. Others may use some of their superannuation to clear their mortgage at retirement. Some may decide to carry debt into retirement and adjust their spending accordingly.

As I noted in the article:

“Neither’s a great option but incorporating the client’s views into our advice is vital.”

There is rarely a one-size-fits-all answer. The right approach depends on an individual’s circumstances, goals and comfort level.

Where does home equity fit?

The article also explored whether retirees should consider accessing the equity in their home to support their lifestyle.

While these strategies may be appropriate in some situations, I generally see them as a later-stage option rather than a starting point.

Many people spend decades working towards owning their home outright. That sense of housing security can provide significant peace of mind in retirement.

As I shared:

“Given my belief in the importance and dignity of guaranteed housing security in retirement, I think their role should be relatively minor. Knowing they’re there if needed is wonderful, but there are many other options we would look at before recommending that approach for clients.”

Retirement planning is personal

Retirement planning is about creating a lifestyle that feels secure, sustainable and aligned with your values.

For some people, that may involve considering the family home as part of the broader picture. For others, protecting their home and preserving housing security will remain a top priority.

The key is understanding your options and making informed decisions that reflect what’s important to you.

Read the full article here: Should advisers count the family home in retirement planning?

P.S. You might also enjoy my latest article on The four dimensions of wealth.