Retired and suffering from mortgage stress? You’re not alone – and there are some helpful options

More and more Australians are approaching retirement with something previous generations didn’t: debt.

Once upon a time, retiring meant paying off the mortgage and living comfortably off your super.

Today? That vision feels out of reach for many older Australians — and the pressure is mounting.

The reality for older Australians

• Over 2 million households aged 50+ still carry mortgage debt, worth over $600 billion nationally.
• Super balances are falling short of the ASFA Retirement Standard, leaving many with less than half of what’s needed for a “comfortable” retirement.
• 43% of retirees’ income is going toward housing costs, well above the 30% housing stress benchmark.
• Cost-of-living pressures — from utilities to food and insurance — are rising faster than incomes.

And if you’re feeling that stress, you’re not alone.

“I’m a mature adult who knows how to budget — but living on a low fixed income and paying rent is exceedingly difficult.” Utility Grant Client (Financial Wellbeing Collective)

What’s causing the financial strain?

The biggest contributors to financial hardship among older Australians today include:

• Cost-of-living increases across food, electricity, fuel, and housing
• Inadequate superannuation or retirement savings
• Unexpected debt — credit cards, medical bills, helping family
• Life events like illness, separation, or job loss later in life

It’s no wonder many are forced to choose between mortgage repayments and essentials like medication or groceries.

So what can you do if you’re struggling?

If you’re a homeowner, you could look at your refinancing options which may allow you to not only refinance to a lower rate and / or better terms, you could also potentially consolidate other debts such as credit cards, or even set up a loan which requires no regular repayments (i.e. a reverse mortgage which is specifically designed for people aged 55 and over).

Support Is also available

If you or someone you know is in genuine financial stress, there are free, independent services available:

• National Debt Helpline
• Financial Information Service – Services Australia
• Financial Wellbeing Collective WA
• Small Business Debt Helpline – CALL 1800 413 828
• Emergency Relief – Financial Wellbeing Collective
• Financial Information Service – Services Australia

Confidential and compassionate guidance

If you’re over 60 and struggling with mortgage repayments or debt, book a confidential chat with our team today. We’ll walk you through your options and help you make the right decision — with no judgment, no pressure, and no obligation. We can also refer to additional help if required.

E: hello@yourhomeequity.com.au

P: 08 6285 9815