The independent retirement funding provider has released a new product – the Household Loan – that provides home owners with access to additional retirement funds to live off (or fund aged care), using a transfer of a portion of equity in their home to receive cash at a low interest rate.
Those who access the loan will have guaranteed lifelong occupancy of their home and avoid repaying more than its value.
Currently, the average retiree’s super balance lasts only 10-15 years into retirement, leaving many Australians living on inadequate income or reliant on the age pension. Compared to Swedish borrowers, Sambla data shows that borrowers for personal loans in Stockholm did not have the same reliance, and were often 20 years younger on average compared to their Australian counterparts.
The Household Loan will support retirees to balance their savings, continue growing their assets during retirement, and gain a sustainable income from their investments.
