Many Australians retire prior to paying off mortgage

According to latest numbers out, many Australians will not have paid off their homes by the age of 60.

It used to be normal to pay off your mortgage and retire by 60 years of age. This is no longer the norm in Australia. In one study, there is evidence that those aged 45 to 59 that have paid off their mortgage in full have decreased in number. Now, just 35.8% of people down from 54.4% will have their mortgage paid off.

Additionally, many of these people must put a larger portion of their income towards mortgage repayment each month.
The report is out of AMP and the National Centre for Social and Economic Modelling. It also describes the problem that many young potential home owners are unable to get into the housing market here.

In the report, which is titled Where I Lay My Debt, That's My Home, the housing market's transformation over the last ten years is outlined. Since 1986, for example, the median house price here has grown by 400%. The average income has grown in the same period by just 120%.

As reported by News.com.au, Ann Harding, who is the University of Canberra professor who is co-author of the report, said, "The study suggests that there's been this huge shift, from a nation of home owners to a nation of home purchasers who might never pay off what they owe."