Downsizing the family home

Two million households are expected to consider downsizing in the next five years — but is it always the right move financially or emotionally? On this episode of the Friends With Money podcast, Money’s Tom Watson is joined by Catriona Graham, financial planner at Bridges Financial Services, to explore the costs, trade-offs and timing of downsizing, and what Australians should consider before making a move. 00:00 Introduction 01:19 What is downsizing? 02:56 Key benefits and motivations 04:38 Hidden costs and risks 05:50 Downsizer super contributions Clarification: To be eligible to make downsizer contributions from the sale of your home, your home must have been owned by you and/or your spouse for at least ten years before the sale. The sale must also qualify for the main residence capital gains tax exemption – either fully (e.g. you’ve lived in it the whole time) or partially (you’ve both lived in it and rented it out). 07:50 Downsizing and the Age Pension 08:53 The importance of timing 10:33 Lifestyle options and retirement living 11:23 Final tips Podcast Links: Listen on Apple Podcasts Listen on Spotify Money Website YouTube Podcast Playlist Email Us: podcast@moneymag.com.au Get stories like this in our newsletter: bit.ly/3GDirbR

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Downsizing the family home is an episode from Friends With Money by Money Magazine.

This episode is 13:40 long.

This episode was published on May 20, 2026.

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