Retirees marooned as banks retreat on reverse mortgages

PHOTO: Major banks have pulled out of reverse mortgages to retirees – Seniors Lifestyle Magazine

Retirees are being blocked from accessing the money trapped in their property as banks pull out of the reverse mortgage market, fuelling a growing income inequality among older Australians.

A new report has warned Baby Boomers have been dudded by only having half of their working lives to accrue super, while having most of their wealth tied up in the family home – putting a strain on families and the government to finance a rapidly growing ageing population.

The Household Capital white paper findings – backed by former superannuation minister Nick Sherry, former chair of the Productivity Commission Peter Harris and Per Capita founder Joshua Funder – said while 80 per cent of retired Australians own their own home the economy has failed to adequately fund their retirements.