Report author and partner at PWC, Catherine Nance, said older Australians were acutely aware of the financial penalty they face by selling the family home. The family home is not included in the age pension asset test, but money released through a reverse mortgage or by downsizing, and moving to cash, does, reducing the amount of pension a person receives.

"In short, our retirees are asset rich but income poor," the Actuaries' report says. "Accessing part or all of their housing wealth will assist many individuals to meet their retirement needs."

Relative income poverty is defined as having an income less than half the national median equivalised household income. Half of all Koreans aged 65 plus live in relative income poverty. In Australia the figure is 36 per cent. Mexico is next at 31 per cent.

Australia's highly-indebted housing market could slow in the second half of the year if banks raise their rates to pass the cost of the $6 billion banking levy to consumers.

"Typically people want to stay in their homes as long as possible, but they eventually get to the point where they simply can't. We know anecdotally that people are very driven by the age pension when they're making that decision."

Ms Nance said it was not unheard of for children, hoping to maximise their inheritance, to encourage their parents to remain in the family home, even if it no longer suited their needs.

"Sometimes the family can be driven more by self interest. Sometimes the children are very reluctant, even if the parent is going into aged care, they're reluctant for the family home to be sold even if it could mean better quality of aged care," Ms Nance said. While not the norm, such pressure could in some cases be considered "elder abuse" by children.

At the same time, however, many children are also a common source of unpaid labour for their parents, and could expect to inherit some money as recompense.

"What you have is an implied cross-generational contract, which says if you look after me I'm going to leave my house to you. That happens a lot and it's a very valuable thing we don't want to impede, otherwise the elderly would have to go out and buy those services."