Retiree advocate's plea: Don't shut door on affordable housing solutions

Executive director Daniel Gannon said household debt and financial security were having a growing impact on the age Australians were retiring, highlighting the need for suitable and affordable housing solutions.

"Unfortunately, a rapidly growing number of Australians are retiring with mortgage debt while the aged pension remains the main source of income for most retirees," Mr Gannon said.

"This spells bad news for a lot of older Australians who have recently retired or many of the 226,000 people intending to retire in the next two years.

New data from the Australian Bureau of Statistics has revealed financial security is the main factor influencing when Australians choose to retire.

According to the data, the government pension remained the main source of income for retirees in the 2021-23 financial years.

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There are currently 4.2 million retirees around Australia, with an average age of 64.8 years.

According to the data, more than 700,000 Australians intend to retire in the next five years.

Mr Gannon said more investment in retirement villages would be key to accommodating the needs of this growing demographic.

"Units in retirement communities are priced on average 48 per cent lower than median house prices in the same postcode, meaning these communities can help address retirement income challenges," he said.

Mr Gannon said the recent federal budget made no plan to accommodate and care for Australians in the midst of an escalating "housing supply war."

"The unfortunate reality is that Australians aren't getting any younger.

"Every day that passes without a plan to house and care for older Australians appropriately and affordably is a missed opportunity."

Mr Gannon said while commonwealth rent assistance was welcome news for "some", most people living in affordable retirement units were excluded by current eligibility thresholds.