Home ownership: the key to a happy retirement....

Retirees renting a home are significantly more worried about their financial outlook than those who own their homes, according to the results of a recent survey by US fund management giant, Vanguard.

Their latest report, How Australia Retires, highlights the growing issue of home ownership in determining the level of confidence Australians have about their financial position in retirement.

It found more than half of those who were renting in retirement were anxious about their financial future and relying solely on the age pension, including rental assistance, in their later years.

This was in stark contrast to those Australians in retirement who do own their own home with 85 percent of home owning Australians claiming they felt very confident about their financial future.

So where does that leave older Australians who maybe renting or who might still be paying off their own homes? Well, it probably is not news to them that this is an issue they need to focus on as they move into retirement.

For those that are still paying off a mortgage, it is worth taking the time to investigate whether they will have their home loan fully repaid by the time they retire and if not, what steps can they take to resolve this situation

Can they increase their repayments so they do own their home outright or is there a realistic option where they can sell their current home and move to a smaller property or an alternative location and so own their home outright?

To often people answer these questions in the negative without really thinking about it, when for many people there are alternatives, they should consider and the benefits of doing so in retirement can be enormous.

For those still renting, they will have need to face some even some even decisions. Is there a way in which they can buy into the property market no matter how small that property might be, and then realistically have it paid for by the time they reach retirement?

Again, it is very easy to just be dismissive and say its impossible but it is worth taking some time and really looking through the alternatives, even if it means moving to a different suburb or even to a regional area.