Introduction We recently worked with a couple nearing retirement who were unsure whether to downsize their family home to free up capital or stay in their current home and access equity through a reverse mortgage. With a strong emotional attachment to their home but growing concern over future cash flow needs, they came to us for guidance.

  Challenges The main challenge was helping them balance emotional and financial priorities. While they loved their home and community, they also wanted to ensure they had enough income to fund travel, hobbies, and healthcare in retirement. They weren’t sure how much capital they would need to generate the lifestyle they wanted — or whether downsizing would truly provide a better financial outcome in the long run.

Solutions We started by helping the couple clarify their retirement income target, factoring in the rising cost of living, lifestyle preferences, and long-term care needs. From there, we created financial projections comparing two scenarios:

1. Selling the home and purchasing a smaller property, with the surplus invested for retirement income
2. Remaining in their home and accessing equity via a reverse mortgage, while keeping their investments intact

The modelling accounted for cash flow impacts, property values, Centrelink entitlements, and estate planning implications.

Benefits The clients left our office feeling confident and supported. They appreciated seeing the long-term impact of both choices in a way that was easy to understand and tailored to their needs. Ultimately, they chose to remain in their home, knowing they had a structured way to access funds without sacrificing the lifestyle they’d worked hard to build. They felt reassured knowing they didn’t have to make a rushed decision and were empowered with a strategy that suited both their heart and their wallet.