Your home is not a retirement plan
While it may be your biggest asset, your home should not be counted on to fund your retirement. For starters, most retirement projections showing ‘income required’ to live on in retirement, assume you own your own home outright. Also, the home where you live does not count towards the asset test to determine eligibility for the Age Pension.
While in some circumstances, downsizing your home to something smaller and less expensive at retirement may free up some capital, it is not advisable to count on it. Another path some people consider is a ‘reverse mortgage’ to fund their retirement. This is not a decision to be taken lightly and again, should not be seen as a retirement plan.