For many Australians, ageing in place – staying in their own home rather than moving into a smaller residence or aged care facility – is a highly desirable goal. It offers independence, familiarity, and a strong connection to the community. However, achieving this requires careful financial planning to cover home modifications, healthcare, and daily expenses.

More than just a financial decision, ageing in place is about how you want to live in retirement. Many of our customers choose to remain in the family home where they’ve built decades of memories – where loved ones gather, and grandchildren play. If this resonates with you, smart financial planning is essential to maintaining both comfort and security.

A well-structured plan provides long-term stability while allowing flexibility as needs evolve. Below, we explore key financial considerations, including superannuation, government support, home equity options, and the role of reverse mortgages.  Given the complexities, consulting a qualified financial advisor can help tailor a plan to your unique circumstances.

The costs of ageing in place

While remaining at home may be more affordable than residential aged care, it still involves ongoing costs, including:

• Home modifications and maintenance – Installing ramps, stairlifts, or bathroom modifications for accessibility, as well as covering ongoing home maintenance expenses.
• Healthcare expenses – Costs for doctor visits, prescription medications, and allied health services such as physiotherapy and podiatry.
• In-home support services – Assistance with personal care, cleaning, meal preparation, and transport, with costs varying based on the level of care required.
• Living expenses – Utilities, council rates, home insurance, and everyday costs.
• Technology and security – Smart home devices, emergency alert systems, and home security can enhance safety and reduce the need for costly care services.

Superannuation and retirement income

Superannuation plays a crucial role in ensuring financial stability during retirement. To optimise its benefits:

• Consider making voluntary contributions before retirement to boost your super balance.
• Decide whether to access your super as a lump sum, an account-based pension, or an annuity to provide a stable income stream.
• Understand how tax and withdrawal rates affect your super savings over time. Learn more here.

Personal savings

Personal savings are key components of a robust financial plan for ageing in place. A high-interest savings account or Term Deposit can offer a steady income stream or act as a safety net for unexpected expenses – from home modifications to healthcare costs. These low-risk, liquid assets offer stability and flexibility, ensuring that funds are available when you need them most.

By integrating personal savings and term deposits into your overall retirement strategy, you can build a solid financial foundation that supports a comfortable and independent lifestyle.

View our competitive Term Deposit rates.

Government support and benefits

Several government programs provide financial assistance to older Australians:

• Age Pension – A means-tested income supplement for eligible retirees. Learn more here.
• Commonwealth Seniors Health Card – Helps reduce medical costs, including prescriptions. Learn more here.
• Government funded support – Subsidised in-home care services, including personal care, nursing, meal preparation, allied health, and domestic assistance. Learn more here.

Checking your eligibility and applying for these benefits can significantly reduce out-of-pocket expenses.

Using home equity to fund ageing in place

For many retirees, their home is their most valuable asset. Rather than selling, home equity can be used to support ageing in place through several options:

• Downsizing & the Downsizer Super Contribution – Selling a large family home and moving into a smaller, more accessible property can free up capital for retirement. Australians over 55 can contribute up to $300,000 from home sale proceeds into their superannuation, boosting retirement savings. Find out more here.
• Reverse Mortgages – A reverse mortgage allows homeowners aged 60 and over to borrow against their home equity without requiring regular repayments. The loan (plus interest) is repaid when the home is sold, typically when the borrower moves into aged care or passes away. Benefits of a reverse mortgage include:
  • Access to tax-free funds while retaining home ownership.
  • Flexible loan options, including lump sums, regular payments, cash reserve and redraw.
  • Flexible loan purposes that can assist with ageing in place including home improvements, day to day expenses, and paying off debt. Read more here.
  • No required repayments until the end of the loan, making it ideal for retirees with limited cash flow.
  • The ability to live in your home for as long as you wish.

Check your borrowing capacity here.

• Home Equity Access Scheme – This government-backed program (formerly known as the Pension Loans Scheme) allows eligible retirees to receive fortnightly loan payments by borrowing against home equity. The Scheme could suit eligible older Australians who require a smaller amount than could be made available via a reverse mortgage to assist with their retirement needs. Find out more here.

Estate Planning and Financial Protection

A comprehensive estate plan ensures financial security and peace of mind. Key components include:

• A valid Will – Ensuring assets are distributed according to your wishes.
• Power of attorney & advance care directive – Appointing someone to manage financial and medical decisions if you become unable to do so.
• Aged care planning – Even if you intend to age in place, planning for potential future care needs is essential.

Seeking Professional Financial Advice

Given the complexities of retirement funding, aged care costs, and home equity options, consulting a financial planner can help:

• Maximise superannuation and pension benefits.
• Structure reverse mortgages or other equity release options.
• Plan for healthcare and in-home care expenses.
• Ensure estate planning aligns with financial goals.

Many Australians desire to age in place, but it requires careful financial planning to ensure long-term sustainability. Whether through superannuation, government benefits, home equity options, or estate planning, a well-structured strategy can provide financial security while supporting independent living.

By planning ahead and exploring available financial tools, older Australians can enjoy a comfortable and secure retirement in their own homes.

 

Applications are subject to eligibility and assessment. Terms, conditions, fees, and charges apply. Please consider our General Terms, Fees and Charges available at heartlandbank.com.au before deciding whether to acquire or continue to hold a Term Deposit or MySavings account. Any advice is general and doesn’t consider your personal situation. Any advice is general and doesn’t consider your personal situation.