In the Red and Going Grey? Wealth and Debt as Australians Approach Age Pension Eligibility Age and Retirement

In recent public policy debate in Australia there has been concern expressed about the increasing proportion of older Australians who are approaching retirement with debt, including mortgage debt on owner occupied housing. Using individual level longitudinal wealth data for 2002, 2006 and 2008 this paper examines the trends in wealth and debt of those approaching and in retirement. While levels of debt have increased these have generally been outweighed by increasing levels of assets and debt is largely held by those able to service it, including by ongoing labour force participation. There is little evidence of any systematic withdrawal of superannuation as a means of discharging debt in retirement. Overall it appears that there has been a five year increase in the age at which people discharge housing debt over the period.