Paying off debt

One million Australian households, with someone aged 65 or older, hold mortgage debt, according to a recent ABC report. About 80,000 of them have a debt that is three to four times their annual income, which means it might take 20 years to clear.

Curtin University professor Rachel Ong, whose research focuses on intergenerational housing issues, says it is common for homeowners to walk into retirement holding debt.

The number of Australians aged 55 to 64 with mortgage debt increased threefold to 47% in 2015, compared with 25 years earlier.

Many turn to their superannuation to reduce debt, but Ong warns that this may reduce their ability to