Australian life expectancy is among the world’s highest at 83.5 years, according to United Nations projections*. However, will your retirement funds enable you to make the most of your golden years?
According to the Australian Bureau of Statistics, our population at retirement age has increased significantly since 2011, when the first of the baby boomer generation turned 65, while the percentage of our population at working age has begun to fall. The rapid rise in the old-age dependency ratio over the next decade is expected to place increasing demands on public finances, which is likely to affect future Age Pension spending.
Most retirees will rely on a combination of superannuation savings, personal savings and the Age Pension. However, many are likely to have a ‘retirement savings shortfall’ where they just do not have enough assets to cover a comfortable standard of living, once they have stopped working.
Homeowners have the advantage of freeing up equity
Your home is likely to be your greatest asset, and if you are ‘asset rich’ but ‘cash poor’ you can borrow money using the equity in your home as security. This is called a reverse mortgage and it can be a great way to boost your finances for retirement, depending on your circumstances.
G&C Mutual Bank’s Retirees Access Home Loan is a variable rate reverse mortgage loan that has been designed especially for those who have reached, or are nearing, retirement. The balance of this loan will be paid by your estate or when your property is vacated or sold.
The benefits include:
- Being able to boost your retirement funds by utilising the equity in your home.
- Borrowing up to 40 percent of the value of your property, or $400,000 (whichever is lesser) depending on your age and the value of the property. Refer to FAQ for more information.
- Receiving the funds in one lump sum to use for any suitable purpose.
- Enjoying your retirement your way in your own home.
We’re ready to help you
G&C Mutual Bank has over 60 years’ experience in helping Australians reach their financial goals, from saving and buying their first home to maximising funds for their retirement.
We recommend that you obtain financial advice before applying for this product. Independent legal advice must be obtained before settlement of the loan will proceed.
We also recommend that you discuss your interest in a reverse mortgage with your family as the loan may affect your estate planning, including inheritance for your loved ones. You should also investigate whether the loan could impact any government support payments, entitlements or other benefits that you currently receive. You may need to discuss your situation with Centrelink or the Department of Veteran Affairs if applicable.
Please note that the Retirees Access Home Loan cannot be used for business purposes or against a property in a retirement village.
*United Nations projections do not include any impacts of the COVID-19 pandemic, source https://www.macrotrends.net/countries/AUS/australia/life-expectancy