Australia has one of the largest retirement savings systems in the world. Yet new research suggests many Australians approaching or already in retirement still don’t feel financially secure.
The 2026 AMP Retirement Confidence Pulse found that just 52% of Australians feel financially confident about retirement.
That is only a modest improvement from 50% a year ago.
More concerningly, 58% of Australians worry about running out of money in retirement, while 47% point to continuing cost-of-living pressures as a key concern. You can read more about the research on AMP’s Retire the Fear research page and in AAP’s coverage of the 2026 Retirement Confidence Pulse. (AMP)
And for older Australians, the picture has actually deteriorated.
Among people aged 65 and over, retirement confidence reportedly fell from 65% in 2025 to 61% in 2026. The previous AMP study recorded confidence among the 65+ group at 65%, despite already finding considerable financial insecurity among older Australians. (AMP)
For Australian homeowners aged over 55, these findings raise an important question:
Could part of the answer already be sitting underneath their feet?
For people who own a valuable home but have limited superannuation, savings or retirement income, carefully accessing a portion of their home equity through a reverse mortgage can be one possible way to improve cashflow and create a greater financial buffer.
It won’t be appropriate for everyone. But the AMP research highlights why it may be time to think about retirement wealth more broadly than simply asking, “How much super do I have?”
The 2026 AMP Retirement Confidence Pulse: what the research found
AMP’s latest Retirement Confidence Pulse is based on research commissioned by AMP and conducted by independent research company Dynata among 2,000 Australians in July 2026. (AMP)
The headline figures reveal a striking disconnect between the size of Australia’s retirement system and the confidence of the people relying on it.
Overall retirement confidence has edged up only marginally, from 50% to 52%.
Meanwhile:
- 58% worry about running out of money in retirement
- 47% cite ongoing cost-of-living pressures
- only 42% of women feel confident about retirement, compared with 61% of men. (AAP News)
The gender divide is particularly important because many older women have accumulated less superannuation after spending periods outside the paid workforce raising children, caring for family members or working part-time.
AMP’s earlier research has highlighted this issue in considerable detail, finding women consistently more concerned about retirement and less confident about their financial position than men. Read AMP’s research on the retirement confidence gender gap. (AMP)
Perhaps the most significant finding for people already retired, however, is that confidence among Australians aged over 65 has gone backwards.
In other words, reaching retirement does not necessarily make the uncertainty disappear.
Why are retirees still worried when Australia has so much retirement wealth?
Australia’s superannuation system is enormous. But a large national pool of retirement savings does not mean every individual household has enough accessible income.
As AMP CEO Blair Vernon observed in relation to the new findings, Australia has built one of the world’s largest retirement savings pools, but still has considerable work to do to turn those savings into retirement confidence. (AAP News)
There is another part of the Australian retirement wealth story that is sometimes overlooked:
the family home.
Older Australians have traditionally had very high levels of home ownership.
Australian Institute of Health and Welfare data shows that 92% of older couple households owned their home in the referenced ABS data, with 81% owning outright. Among older single-person households, 75% owned a home, with 69% owning outright. View the AIHW data on older Australians and home ownership. (AIHW)
This creates an unusual situation.
A retiree might have a modest super balance and limited weekly cashflow, while simultaneously owning a home worth $800,000, $1 million or considerably more.
On paper, they may be relatively wealthy.
In everyday life, however, they can still struggle with electricity bills, insurance, council rates, groceries, healthcare, home repairs and unexpected expenses.
This is the familiar “asset-rich, cash-poor” retirement dilemma.
It is also one of the situations in which some homeowners begin investigating how a reverse mortgage works.
Retirement itself is becoming more expensive
The latest ASFA Retirement Standard for the March quarter of 2026 estimates that a homeowner aged 65–84 needs approximately:
- $55,923 a year for a single person, or
- $78,566 a year for a couple
to fund what ASFA describes as a comfortable retirement lifestyle. View the latest ASFA Retirement Standard. (ASFA)
ASFA has also increased its estimated superannuation balance required at age 67 for a comfortable retirement to:
- $630,000 for a single homeowner
- $730,000 for a homeowner couple. (ASFA)
These figures assume home ownership and take the Age Pension into account.
Many Australians approaching retirement simply do not have super balances at those levels.
But some of them do have another significant asset:
their home.
This is why retirement planning increasingly needs to look at the whole household balance sheet, rather than treating superannuation, the Age Pension, savings and housing wealth as completely separate worlds.
Retirement confidence is about cashflow, not just net worth
This is perhaps the most important lesson for homeowners from AMP’s new research.
A person’s net worth and their day-to-day financial confidence can be very different things.
Someone can own a million-dollar home and still worry about whether they can afford a $6,000 dental bill.
They can have substantial net wealth and still hesitate before turning on the air conditioning.
They can have hundreds of thousands of dollars tied up in property yet worry that an unexpected home repair, medical expense or car replacement will seriously disrupt their retirement plan.
In fact, earlier AMP research found that many older Australians find the retirement system difficult to navigate, with three in four Australians aged 50+ saying the system is too complex. AMP has also highlighted the importance of liquidity — having money available when it is actually required — as one of the key needs to consider in retirement planning. (AMP)
For homeowners, this is where home equity can potentially become part of the conversation.
How a reverse mortgage can turn some home equity into usable retirement funds
A reverse mortgage is a specialised home loan that allows an eligible older homeowner to access part of the equity in their property without having to sell the home.
The homeowner remains the legal owner of the property.
Unlike an ordinary home loan, regular monthly loan repayments are generally not required. Instead, interest and fees are usually added to the loan balance, with the debt commonly repaid when the property is eventually sold or another repayment event occurs.
You can read a plain-English explanation in our guide: What is a Reverse Mortgage?
Depending on the lender, reverse mortgage products can be available to Australian homeowners from age 55. ASIC’s Moneysmart consumer guidance discusses home equity release more broadly as an option for homeowners aged 60 and over. (Seniors First)
Importantly, a reverse mortgage does not necessarily mean taking a large lump sum.
Depending on the lender and loan structure, funds may potentially be taken as:
- a lump sum
- regular instalments
- funds held in a cash reserve facility for future use
- or a combination of these approaches.
Our guide to how reverse mortgages work in Australia explains these drawdown options in more detail.
For an older homeowner concerned about retirement confidence, that flexibility can be particularly important.
How home equity could address some of the worries identified by AMP
Consider a 68-year-old retiree who owns their home outright but relies mainly on the Age Pension plus a relatively small super balance.
Their home may be worth $900,000.
Their problem is not necessarily that they have insufficient wealth.
Their problem may be that most of their wealth cannot readily be used to pay a bill.
A carefully structured reverse mortgage might allow them to establish a cash reserve for unexpected expenses while drawing relatively small amounts only when required.
Another retiree might have enough income for normal weekly expenses but find that insurance, council rates, medical expenses and home maintenance are gradually eating into their savings.
A regular instalment from home equity could potentially supplement their existing retirement funding.
Someone else may still have a conventional mortgage approaching retirement. Depending on their circumstances, refinancing that debt into a reverse mortgage could potentially remove compulsory monthly repayments and improve household cashflow.
And another homeowner may simply want the reassurance of knowing a pool of money is available if something unexpected happens.
The value in each case is not necessarily about dramatically increasing spending.
It can simply be about creating financial breathing room.
Your home can become another part of the retirement income conversation
For decades, Australians have largely been encouraged to think of retirement as three separate buckets:
Superannuation funds retirement.
The Age Pension provides a safety net.
The family home is where you live and, eventually, what you leave behind.
But retirement is changing.
People are living longer. Retirement can potentially last 20, 25 or 30 years. Health and aged-care costs can appear unexpectedly. Adult children may need financial assistance. Homes require maintenance. Cars need replacing.
And inflation means a retirement budget that once looked comfortable may no longer stretch as far.
For homeowners, this means it can make sense to at least include housing wealth in the retirement planning conversation.
That does not necessarily mean using it.
It means understanding what options exist.
If you are still at the research stage, the Seniors First Knowledge Centre contains educational articles, guides, videos and tools designed specifically to help older Australians understand equity release.
You can also explore SERAH — the Seniors Equity Release Access Hub, which allows people to learn about reverse mortgages and later-life finance options at their own pace before deciding whether they want to speak with a broker.
But a reverse mortgage has costs and trade-offs
A reverse mortgage should never be viewed as “free money”.
It is a loan.
Because regular repayments are generally not required, interest is normally added to the outstanding balance and compounds over time.
This means the debt grows and the amount of equity remaining in the property can decline.
ASIC’s Moneysmart specifically advises consumers to consider:
- how much they borrow
- how the money is taken
- the interest rate
- loan fees
- and how long the loan may remain outstanding.
Moneysmart also notes that taking a larger lump sum generally costs more because interest begins accruing on the full amount sooner. Read ASIC Moneysmart’s guidance on reverse mortgages and home equity release. (Moneysmart)
That is why loan structure matters enormously.
Rather than borrowing the maximum amount available upfront, it can sometimes be more efficient to draw only the amount required and access additional funds gradually over time.
This principle is central to the Seniors First approach to reverse mortgage loan structuring.
Our brokers consider how much a customer requires now, what they may need later, and whether a combination of lump sum, instalments and cash reserve could help reduce unnecessary interest over the life of the loan.
You can read more about our approach and Home EquiSaver™ in our guide to reverse mortgage interest rates and loan structuring.
See what different home equity scenarios could look like
Because reverse mortgage interest compounds, it is useful to model the potential long-term outcome before making a decision.
The Seniors First Reverse Mortgage Calculator allows homeowners over 55 to explore different scenarios based on factors including:
- their age
- property value
- proposed loan amount
- interest rate
- time
- and assumed property growth.
The calculator illustrates both the estimated future loan balance and remaining home equity.
It can be especially useful for comparing a smaller initial advance with a larger upfront loan.
However, calculator results are estimates rather than a personalised recommendation. A specialist broker can run more detailed scenarios and compare actual lender policies.
Choosing a lender matters too
There is no single standard reverse mortgage in Australia.
Eligibility criteria, interest rates, lending limits, loan features and post-settlement procedures can differ significantly between lenders.
Seniors First specialises in comparing these differences for older borrowers.
If you want to understand the current market, see:
- Which banks and lenders offer reverse mortgages?
- Compare current reverse mortgage interest rates
- Why use a specialist reverse mortgage broker?
The lowest advertised interest rate is important, but it is not the only consideration.
Loan structure, future access to funds, establishment costs, property criteria and lender rules can also materially affect the outcome.
What protections apply to reverse mortgages?
Australian reverse mortgages also have important consumer protections.
ASIC’s Moneysmart states that reverse mortgages taken out from 18 September 2012 onwards have negative equity protection.
This means you cannot ultimately owe the lender more than the market value of your home. (Moneysmart)
Lenders and brokers must also go through reverse mortgage projections with borrowers showing how the loan could affect home equity over time. (Moneysmart)
There are nevertheless important issues to consider.
Releasing home equity will generally reduce the amount of equity remaining in your property and may therefore reduce the inheritance eventually available to beneficiaries.
Depending on what happens to money after it is drawn, accessing home equity can also have implications for Age Pension entitlements or aged-care arrangements.
That is why it is important to understand the consequences, discuss the decision with family where appropriate, and obtain independent financial or legal advice when required.
Seniors First also encourages borrowers to research the product thoroughly before proceeding. Our reverse mortgage application process guide explains the steps involved and the issues worth considering before an application is submitted.
The real message from the AMP research: know all your options
The 2026 AMP Retirement Confidence Pulse does not suggest that Australians have suddenly become poor.
It reveals something more complicated.
Australia has accumulated enormous retirement wealth, yet almost three in five Australians remain worried that their money could run out. (AAP News)
And even among Australians already aged over 65, retirement confidence has gone backwards compared with the previous AMP Pulse.
For homeowners over 55, that should prompt a broader discussion about what “retirement wealth” actually means.
Your retirement resources may include superannuation.
They may include savings and investments.
They may include the Age Pension.
And they may also include a substantial amount of wealth tied up in your home.
A reverse mortgage is certainly not the right answer for every older homeowner.
Downsizing, using savings, adjusting expenditure, accessing government support or simply leaving your home equity untouched may all be more appropriate depending on your circumstances.
But if the main source of retirement anxiety is having too little accessible cash while owning a valuable property, ignoring home equity altogether may also mean ignoring one of your largest financial resources.
The first step isn’t borrowing.
The first step is understanding your choices.
Want to understand what your home equity could provide?
Seniors First specialises in helping Australians over 55 understand their reverse mortgage and home equity release options.
Our specialist brokers can:
- assess how much home equity you may be eligible to access
- compare reverse mortgage lenders
- compare reverse mortgage interest rates
- explain the costs, risks and protections in plain English
- model how different loan structures could affect your equity over time
- and explore ways of structuring a loan to help minimise unnecessary compound interest.
You can start by reading our guide to how reverse mortgages work, explore the Seniors First Reverse Mortgage Calculator, or visit the Seniors First Knowledge Centre.
Or contact Seniors First for an obligation-free conversation about whether home equity release could form part of your retirement funding strategy.
This article contains general information only and does not take into account your personal objectives, financial situation or needs. Reverse mortgages involve interest and other costs and will generally reduce the equity remaining in your property. Consider obtaining independent financial and legal advice before making a decision.
