The previous years are definitely not what we expected it to have been. What proceeded after the sudden health crisis is the resulting financial breaking point, one of which is the retirement income compression.
For most seniors, it’s been especially challenging as they were supposed to be living their dream retirement. Instead, they’ve been more concerned about their health, along with their retirement income compression as super balances and income streams have progressively dried up.
ASAG Equity Release
Home equity is an intrinsic part of the pillar of retirement funding, according to the government in its Retirement Income Review. As other sources of funds are reduced, 75% of senior Australians face income uncertainty or inadequacy, undermining their wellbeing and confidence throughout retirement.
Tapping into the home equity is a reasonable option considering most retired Australians have much more assets in their homes than in other investments or their super. Overall, retirees in Australia have $1 trillion invested in home equity. Accessing some of those funds allows them to continue a particular lifestyle in their own home and their community.
It’s ASAG’s mission to help senior Australians live the life they’ve earned. ASAG has introduced some solutions to provide quick access to wealth from the largest retirement asset they possess.
Lump Sum and income stream
ASAG’s Lump Sum option allows you to immediately receive a starting amount on settlement. You may utilise it for your general living expenses, to pay your rates or fees, or to help a family member who has lost a job in the pandemic.
Regular Instalments as regular income
Regular Installments from ASAG is another great solution to replace lost income and maintain its steady flow over short to medium term, which provides flexibility to meet your retirement needs.
It’s up to you how to receive your payments, either monthly, quarterly, or annually in a number of years selected, or for as long as you reside in your home. Apply online so your retirement income stream can be available almost immediately.
You probably have to put aside funds to meet unexpected costs. ASAG’s Cash Reserve (line of credit) is available so you can cover your bills now. This facility serves as your contingency fund for those unplanned financial needs, which could be healthcare expenses or home repairs.
Regular interest repayments are not required with these products. However, you may pay back your seniors equity loan at any time without penalty.
As senior Australians find sanctuary in their home during the pandemic, ASAG wants them to feel safe in their retirement too, so all the usual consumer protections apply. This includes retaining ownership of home, non-removal from home against will, no negative equity guarantee, and any unused amount in the facility won’t be charged an interest.
Applications for credit are subject to lending criteria and eligibility. Terms and conditions apply. Refer to ASAG’s Product Guide and Fee Schedule for more information.
Most resolutions made at the beginning of the new decade have fallen by the wayside. However, a recent major change in national policy on ageing saw an unprecedented progress in “longevity and positive ageing”.
Social and economic policy must be addressed to benefit from years of retirement. Firstly, healthcare and community are vital to retirement outcomes. Seniors with greater income will be happier, healthier, and more active. Secondly, suitable housing, aged care, and funding for retirement are also essential.
If you liked our ‘The Retirement Income Compression’ and found some valuable information, check this space regularly to get more updates on reverse mortgages and equity releases.