The release of the Intergenerational Report 2015 by the Australian Treasury shows that in just four decades time there will be more than 7 million Australians aged over 70, placing extraordinary pressure on the Federal health and aged care budgets.

"Retirement villages already save the government $2.6 billion per annum. Extending this option further to the 75.1% of pensioners who own their own home, but limiting it to the 1.1 1 million pensioners over 75, will extend these savings even further", says Ken Morrison, Chief Executive of the Property Council of Australia.

"Without policy changes now, governments will not be to afford to meet the demand for services".

"A long-term view is needed – the substantial savings to be achieved in the health and aged care budgets by ending the penalty on full rate over 75 pensioners wanting to sell the family home far outweighs the policy's very small cost to the age pension budget.

Executive Director – retirement, Mary Wood said: "This is a very simple, easily implementable policy solution to one of the biggest problems facing government.

"It affords older Australians a real choice about where they want to live during thier retirement and allows them to be far more self-sufficient".

"The Property Council's policy proposal is tightly targeted and has high level costings to ensure the benefits are accessible to those in need and not so-called millionaire retirees".