SAN FRANCISCO: Retirees with wealth over a given threshold should be required to make a contribution to their aged care costs by taking out a loan against their property, according to a report on policy options for the treatment of equity trapped in older people’s homes.
Think tank Per Capita has recommended that wealthier retirees should contribute more to their own care through the use of home equity.
However, the report argues that there are a number of reasons why old people prefer to stay in the family home and the solution to unlocking home equity cannot be just a financial one.
It cites several surveys into what stops people aged over 65 from downsizing. The biggest factor is the effort required. Another factor is the financial impact of moving.
Another important factor is the lack of suitable housing options for retirees, especially those with disabilities.
And a focus group said they stayed put because they had strong attachments to home, garden, local networks and community…