The Federal Government has included a downsizing policy in Tuesday’s Federal Budget release, by introducing an incentive that will entice, and make easier for retirees to invest proceeds from the sale of a house into their superannuation.

Executive Director of Retirement Living at The Property Council, Ben Myers, said that enabling seniors to invest a percentage from the sale of a home will encourage some seniors to downsize.

“One of the biggest drags on Australian health budgets is the impact of older people living in three, four or five bedroom houses not suited for ageing, with high levels of maintenance and trip hazards” said Mr. Myers.

Mr. Myers continued to say that previous research has shown that retirees who downsize to retirement villages are saving the Federal Government more than $2 billion each year, a result of fewer hospital and GP visits coupled with delayed entry into aged care.

“The Federal Government’s announcement is a very positive step forward but we hope it will be the first of several steps to remove the remaining barriers to downsizing,” Mr Myers said.