Dear Vanessa,

I'm 62, single and have spent most of my adult life trying to pay off my home.

I'm finally nearly there. I only have about $45,000 left on the mortgage and my house is worth around $1.2million.

On paper, I know I'm fortunate.

The problem is, I have only about $180,000 in super.

I raised my children, had years where I worked part-time and then went through a divorce. Paying off the house became my financial priority because I was terrified of reaching retirement without somewhere secure to live.

Now I'm exhausted.

I work four days a week, but I honestly don't know how much longer I can keep doing it. I keep thinking, I have a million-dollar house - why do I feel like I can't afford to stop working?

My children tell me never to sell because the house is my security and eventually it will be their inheritance.

But what is the point of owning an expensive house if I don't have enough money to actually live?

Should I keep working and try to build my super? Sell and buy something cheaper? Or is there another option I'm missing?

April

April, 

You've spent decades building financial security. The question now is whether the version of security that served you at 40 is still the right one at 62.

Because there's an uncomfortable contradiction in your letter: you own an asset worth around $1.2 million, yet you're exhausted and frightened that you can't afford to stop working.

This is what people mean when they talk about being 'asset rich and cash poor'.

For many women in their 60s, there's a story behind those numbers. Years spent raising children, periods of part-time work, divorce and lower retirement contributions can all show up decades later in the balance of your super.

You did what felt safest. You concentrated on keeping a roof over your head and getting rid of the mortgage.

That wasn't a bad decision. In fact, being close to owning your home outright puts you in a position many people would love to be in.

But a home and retirement income are not the same thing.

Now you need to understand how the wealth you have built can support the next stage of your life.

The first thing I would challenge is the idea that you cannot sell the house because it is your children's inheritance.

Your children's inheritance should not require you to work until you are physically or emotionally unable to continue.

You have spent your working life building this wealth. Your home needs to provide security for you first.

That doesn't necessarily mean selling it.

One option is to stay where you are, continue working for a defined period if you are able, clear the remaining mortgage and use those final working years to focus more heavily on building your super.

Another is downsizing.

Selling your current property and buying something significantly cheaper could potentially release a substantial amount of equity to help fund your retirement. There are also specific superannuation rules around downsizer contributions, so this is something worth getting professional advice on before making any decisions.

But downsizing isn't the only way to access the wealth sitting inside your home.

I recently spoke with Dianne Shepherd from Homesafe, a company that has been helping older homeowners access equity in their homes for more than 20 years.

As Dianne explained to me, Homesafe offers 'a solution which is non-debt and helps them access the money they need in retirement.'

Homesafe Wealth Release is different from a traditional loan or reverse mortgage. Eligible homeowners can access some of the wealth tied up in their property in exchange for an agreed share of the future sale proceeds of the home.

That doesn't mean it will be right for you. Giving up some of the future value of your property is a significant decision and needs to be properly understood.

There are other ways of accessing home equity too, including reverse mortgages and the government's Home Equity Access Scheme, and they all work differently.

This is why I wouldn't make your decision based on the house alone - or your super balance alone.

At 62, I think one of the most valuable things you can do is have a proper retirement plan prepared.

Ask someone to model the different scenarios.

What happens if you work until 65? What if you reduce your hours sooner? What if you sell and downsize? What if you stay in the house and access some of its equity? What retirement income could your super provide, and what government support might you eventually qualify for?

Seeing those options in actual numbers can turn a frightening question on being able to retire, into a series of choices.

If you don't already have a financial adviser, you can use my free Find a Financial Adviser service here.  

And April, there is one more conversation I think you need to have.

It's with your children.

Tell them that you love them and hope there will be something to leave them one day. But the home you worked for is also part of your retirement plan.

Inheritance is what is left after someone has lived their life. It shouldn't be the reason they can't afford to live it.

The goal isn't necessarily to die owning the largest possible asset.

It's to make the wealth you've spent your life building work for you during your life.

You may have more options than you think.

All the best, 

Vanessa