Mortgage vs super
Will paying off your mortgage affect your Age Pension payments? Our friends at Retirement Essentials go over the pros and cons.
A higher cost of living has increased financial hardship for more Australians. We look at why this has happened, and actions you can take to help ease money worries.
For many Australians, life is tougher in a post-COVID world. Since 2020, interest rates, mortgages and inflation have risen fast but real wages have gone down1. Despite the lowest unemployment rate in a generation, higher living costs are affecting living standards.
A challenging economic climate has seen more people experience severe or moderate financial stress, while the number of people who are financially secure has dropped. A 2022 AMP financial wellness report2 showed that women and those working part-time are facing more severe or moderate financial stress at 27% and 26%, respectively. This was an 8% increase since 2020 for both groups.
When a person can meet expenses and has some money left over, is in control of their finances, and feels financially secure, now and in the future, they have a feeling of ‘financial wellbeing’.
Positive financial wellbeing can help us manage financial stress and be more resilient if we’re facing financial stress.
In the current economic climate, it can be hard to feel in control of your finances. The key is to take small, achievable steps to help get (or keep) you on the path to financial wellbeing.
1 The Australia Institute: 'Real Wages Fell 4.5% in 2022; Largest Fall on Record as Rate Rises Risk Recession’. 23 February 2023.
2 AMP Financial Wellness Report, 2022.
We’ve partnered with Ask Izzy, a not-for-profit social enterprise that helps people access support services.
If you need some help outside of super, the Ask Izzy website can connect you with nearby support services across Australia. You can search for over 400,000 services close to you, including financial assistance, meals, mental health counselling, shelter, family violence support, and much more.
Will paying off your mortgage affect your Age Pension payments? Our friends at Retirement Essentials go over the pros and cons.
Thinking about adopting a furry friend? The benefits of rescue pet adoption far exceed just saving a life.
Book an appointment with a HESTA Superannuation Adviser for a chat about how to make the most of your super.