Why 77 is the new 65 – Australians rethinking their retirement

By Darren Moffatt

March 23, 2023


interest rate reverse mortgage

Old age now begins at 77, at least according to research that looked into the changing expectations and opportunities for Australians and how they affect life stages. 

In the 1950s, the life stages were simply categorised into three: childhood (0 to 12), adulthood (13 to 60) and old age (61 to 69). 

With the availability of knowledge-based jobs and pushing back traditional milestones such as marriage, the life stages expanded in the 1990s into four categories: childhood (0 to 12), teenager (13 to 19), adulthood (20 to 64) and old age (65 to 77). 

But today, the life stages are further stretched into six categories: childhood (0 to 12), adolescence (13 to 28), adulthood (29 to 55), early retirement (56 to 64), retirement (65 to 76) and old age (77+). 

Early retirement refers to a period where Australians are pursuing both work and leisure. 

The Demographics Group report, which published the data, was commissioned by wealth manager AMP. 

Health advances, coupled with the growing class of knowledge-based workers, also means Australians have longer working lives, and are considering new ways to fund their lifestyle goals,” demographer Bernard Salt said in an interview with The Australian Financial Review.  “This is forging an approach to wealth built around flexibility and time, rather than a traditional goal of home ownership. 

On top of financial independence, research participants also cited contentment, good health, freedome, the absence of stress time and a sense of success as features making up “wealth”. 


How a Reverse Mortgage can help you build your retirement wealth

A reverse mortgage is a financial product designed for homeowners who are at least 62 years old and have significant equity in their home. 

With a reverse mortgage, the lender pays the homeowner a portion of the equity in the form of a loan, which the homeowner can use for any purpose, including building retirement wealth.

Here are a few ways a reverse mortgage can help you build your retirement wealth:

  • Supplement retirement income: A reverse mortgage can provide a source of income to supplement your retirement income. The funds received from the loan can be used to cover expenses such as medical bills, travel, or other expenses you may have in retirement.
  • Eliminate monthly mortgage payments: With a reverse mortgage, you can eliminate your monthly mortgage payments. This can free up cash that you can use to build your retirement savings.
  • Increase investment opportunities: By eliminating your monthly mortgage payments, you may have more cash available to invest in stocks, bonds, or other assets that can help grow your retirement wealth.
  • Access home equity without selling: A reverse mortgage allows you to access the equity in your home without selling it. This means you can continue to live in your home while using the funds from the reverse mortgage to build your retirement wealth.

It’s important to note that a reverse mortgage is not the right option for everyone, and there are some risks associated with this type of loan. 

It’s important to speak with a financial advisor or housing counsellor before deciding if a reverse mortgage is right for you.

For a more in-depth look into Reverse Mortgages, download this FREE EBOOK from Seniors First. 

Or if you want to speak to a Reverse Mortgage advisor, you may call us on 1300 745 745. 


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