Viager in Australia: A French Solution for Retirement Income?

As Australia faces mounting pressure to provide sustainable retirement income for its ageing population, creative property solutions are gaining attention. Enter viager—a French property transaction model that’s been quietly solving retirement dilemmas for centuries. Could this Gallic import be the missing piece in Australia’s housing and retirement puzzle?

What is Viager? A French Approach to Property and Retirement

Viager is a unique way to buy and sell real estate, most commonly used in France by elderly homeowners. In a typical viager arrangement:

• The seller (often a retiree) transfers ownership of their home to the buyer.
• The buyer pays an upfront deposit (the bouquet), usually 10–30% of the property’s market value.
• The buyer then pays a regular annuity to the seller for the rest of the seller’s life.
• The seller usually retains the right to live in the property until death.

This system essentially allows retirees to access the equity in their homes while guaranteeing a lifelong income stream, and gives buyers the prospect of acquiring property at a discount—albeit with an uncertain timeline.

Why Viager Could Matter for Australia in 2025

Australia’s superannuation system faces increasing strain as longevity rises and house-rich, cash-poor retirees seek alternatives to downsizing. Policy reviews in 2025 have underscored the need for more flexible retirement income options, especially for those who wish to age in place. Viager could offer:

• Income Security: Regular payments supplement or replace the Age Pension, potentially reducing public spending.
• Aging in Place: Sellers can remain in their homes, maintaining community ties and independence.
• Market Access: Buyers, particularly younger Australians, could access property at below-market prices, albeit with delayed possession.

With the Australian government’s 2025 Retirement Income Review highlighting the need for more innovative equity release products, viager stands out as a model worth exploring.

Challenges and What It Would Take to Make Viager Work Here

Despite its promise, viager is almost unknown in Australia. For the model to gain traction, several hurdles would need addressing:

• Legal Framework: Australian property law doesn’t currently accommodate life annuity sales in the same way as France. Legislation would need updating to ensure both parties are protected.
• Cultural Acceptance: The viager system relies on a level of trust and a willingness to invest in an uncertain timeline—something that may clash with Australian attitudes to home ownership and inheritance.
• Financial Literacy: For retirees and buyers alike, understanding the risks and rewards of viager is crucial. Clear regulation and consumer education would be essential.
• Taxation and Pension Implications: Any income from viager would need to be integrated into existing tax and Centrelink frameworks, ensuring retirees aren’t penalised for accessing their home equity in this way.

Despite these barriers, the growing interest in equity release products—such as reverse mortgages and the Home Equity Access Scheme—suggests there is an appetite for creative solutions.

Could Viager Find a Home Down Under?

With Australian policymakers actively seeking new ways to help seniors unlock home equity, the viager system is no longer just a French curiosity. If adapted carefully, it could offer a win-win: stable retirement income for older Australians, and a novel pathway to home ownership for the next generation.

As 2025 brings renewed focus on housing affordability and retirement security, it may be time for Australia to look beyond its borders—and perhaps take a leaf from the French property playbook.