I'm about to retire - should I sell my Canberra house? Nicola Powell discusses

The decisions leading to retirement are swayed depending upon your personal situation and preference.

For some, the mere thought of moving kilometres away from grandchildren would be too hard emotionally. For others, reaping the benefits of equity growth coupled with a move to a more affordable location could leave spare cash to begin tackling your bucket list.

In reality, we are a nation living longer than ever before, which requires more money to fund retirement. In 1975, an estimated 2.9 per cent of the ACT population were aged 65 and over, by 2016 this reached 12.2 per cent (ABS Australian demographic statistics).

By the year 2055, it is projected 40,000 Australians will be centenarians, compared to an estimated to 3526 people in 2016 (Australian Government Intergenerational Report Australia in 2055).

Employment insights prove a higher proportion of the population aged 65 and above remain in the workforce. This could be a matter or choice but presumably is due to a lack of funds for retirement. It is a trend that continues to edge higher.

In July 1978, the work participation rate of Australians 65 years old and above was 9.4 per cent (married) and 4.1 per cent (unmarried), in July 2017 the figure rose to 16.5 per cent (married) and 8.2 per cent (unmarried) (ABS labour force data). As our life expectancy improves it is likely a higher proportion of the population will continue to work into the traditional retirement years. Ultimately, we will all need more super to fund a basic retirement.

The introduction of mandatory super was expected to fund a mass of early retirees. Baby Boomers have not had the pleasure of receiving this payment throughout their entire working life. The mandatory contribution introduced in 1992 has created a gap in the superannuation savings of Baby Boomers.

A comfortable retirement will require $59,971 annually for a couple and $43,665 for a single, according to the Australian Securities and Investments Commission (March quarter 2017). The requirement for additional savings is highlighted when compared to the aged pension, $34,819 for a couple and $23,096 for a single, according to the Department of Human Services.

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Twenty years ago the median house price in Canberra was $151,573. By 2007 the median house price rose to $468,872, now it is a staggering $708,025. Unlocking the substantial equity gain may be tempting.

A move to a lower price point could help to assist in a comfortable retirement, or allow you to financially assist your adult children – most probably to gain access to the housing market.

As of July 2018, Australians aged 65 years and over can make a non-concessional (post-tax) contribution up to $300,000 (an individual) from the sale of their home into superannuation, a policy designed to encourage downsizing. It is important to consider the financial implications The aged pension is income tested. Any proceeds from the sale could alter government entitlements.

Ultimately, both financial and emotional aspects are pivotal in the decision-making process. If a move is on the cards, factor the travel distance to nearest and dearest, and research the community in which you are looking to reside.

Nicola Powell is a property expert for Allhomes. Twitter: @DocNicolaPowell