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Household Capital adds two C-suite execs to its growing team

Tracey Franks   Content Manager
May 28, 2020 2 MIN

Household Capital, an independent, specialist retirement funding provider has announced it has further expanded its team. On the back of strong growth and following the recent appointment of a Customer Operations Manager, Household Capital has added two specialists in operations and risk management.

Luke Rattigan has been appointed to the newly created role of Chief Operating Officer, with a primary focus to scale the business for further growth. He will be responsible for ensuring the right  processes, people and planning are in place as Household Capital looks to grow and launch new services to help Australia’s retirees access the retirement funding they need for a comfortable lifestyle.

Luke joins Household Capital from consumer electronics start-up Nura, where as Chief Commercial Officer he oversaw the implementation of a new business model to disrupt the headphones industry. His background also includes senior roles as COO at Sportsbet, as well as RELX (formerly Reed Elsevier) and as an economist for the Productivity Commission.

Commenting on his appointment, Luke said, “I’m excited to work for a business that is solving a real problem for an important cohort of Australians – helping Australians be better off in retirement.”

Josh Funder, Household Capital’s CEO, commented, “Luke brings demonstrable experience in scaling new and innovative businesses.”

Chris Bishop has worked with Household Capital as a consultant since 2018 and is responsible for implementing the stringent credit management policy framework within which the business operates. He was recently appointed Chief Credit Officer on a full time basis, and will continue to provide credit policy and procedures development, implementation and management, as well as credit approval authority.

Chris is a qualified lawyer, with specialisation in credit and risk management. He has held a number of senior legal, company secretary and line management roles. He was the first to hold the new role of Head of CBA Retail Bank Compliance, is a previous Director Legal Australian Bankers’ Association and previous Head of Credit for Telstra.

Commenting on his ongoing role Chris said  “Delivering ‘Live Well at Home’ solutions for senior Australians is hugely rewarding.  Household Capital is leading the way in providing responsible access to long-term home equity retirement funding.  We are able to provide high quality credit to retired Australians throughout their retirement and meet a major unmet need.”

Commenting on Chris Bishop’s appointment, Josh Funder said, “With superannuation and investment portfolios decimated, and dividends and term deposits at all-time lows, Australian retirees need help to fund their retirement.”

“We are delighted Chris has agreed to join us on a full time basis. His expertise will help us to continue delivering innovative solutions to provide Australians with flexibility and choice in retirement, and importantly the confidence to Live Well At Home.”

Original article on Advisors Voice

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New appointee to Household Capital board

Tracey Franks   Content Manager
April 30, 2020 1 MIN

Household Capital, an independent, specialist retirement funding provider has announced that entrepreneur and technology specialist Danny Gorog will join its board of directors.

Danny specialises in the development of mobile apps and digital platforms, as well as providing strategic advice to businesses. He is a founder, investor and currently CEO of Snap Send Solve, a technology platform that simplifies the reporting of issues to local councils in Australia and New Zealand.

Danny also co-founded Outware Mobile (outware.com.au), Australia’s leading mobile app developer in 2009. Outware develops apps for a number of ASX-100 companies, including ANZ, Coles, NAB, NIB, Qantas, RACV, Seek and Telstra. He sold Outware to Melbourne IT in 2015.

An active investor in early stage start-ups, Danny is currently a director and board member of Melbourne Symphony Orchestra, a director of ASX-listed DWS Group and a trustee of the Telematics Trust.

Josh Funder, Household Capital’s CEO, commented, “Danny brings Household Capital superb entrepreneurship and technical focus.”

“We use a digital platform to fulfil our longstanding mission to help Australians Live Well At Home™ and deliver home equity as a core part of Australian retirement funding.”

“Danny’s appointment will provide a strong resource and sounding board for our tech team to draw on.”

Original article on Advisors Voice

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Household Capital adds UK home equity market expertise to team

Tracey Franks   Content Manager
April 23, 2020 1 MIN

Household Capital, an independent, specialist retirement funding provider has announced it has expanded its team with the addition of key expertise in retirement funding customer operations.

Jay Sewell has joined Household Capital from UK-based Age Partnership, a leading provider of home equity funding. Jay held the role of Head of Retirement Funding for eight years, during which time he oversaw significant business growth, with Age Partnership taking a 28 percent share of the UK’s £3 billion per annum market. Jay played a key role in helping the UK equity release market achieve six years of double-digit growth as the UK’s fastest-growing credit sector.

In his newly created role, Jay will lead Household Capital’s customer operations to support distribution and work closely with the technology, credit and customer service teams to deliver the best customer experience and help the business achieve its operational and strategic objectives.

Commenting on his appointment, Jay said, “When I first met with Household Capital, I felt a real and genuine connection to the people within the business, the business itself and its vision.”

“I am genuinely excited to be part of such an innovative and forward-thinking business that is at the forefront of the retirement market, stands with Australians and delivers improved retirement funding.”

The UK equity release market is significantly more developed than its Australian equivalent. In 2019, nearly £4 billion of housing equity was accessed by older homeowners. Earlier this year, Legal & General, one of the largest providers of equity release products in the UK, took an equity stake in Household Capital, citing Australia as a market with lots of potential.

Josh Funder, Household Capital’s CEO, commented, “Jay brings demonstrable experience in building a client service capability designed to delight clients. Australian retirees have saved $1 trillion in home equity.”

“With superannuation and investment portfolios decimated, and dividends and term deposits at all-time lows, Australian retirees need help to fund their retirement.”

“Household Capital’s longstanding mission is to help Australians Live Well At Home™ and deliver home equity as a core part of Australian retirement funding.”

“Jay comes to Household Capital having been a leader in building a 600-strong business and his team was awarded the ‘Number one net promoter’ score across UK financial services companies; we look forward to learning from his insights and working with Jay to deliver quality retirement funding solutions to our customers as the business grows.”

Original article on Advisors Voice

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Australians not feeling supported by the retirement funding system

Tracey Franks   Content Manager
February 4, 2020 2 MIN

Household Capital, an independent, specialist retirement funding provider has completed its submission to the Retirement Income Review in response to the government’s consultation paper released in November 2019.

The purpose of the Retirement Income Review is to ascertain the degree to which retirees are supported by the three pillars of Australia’s retirement system; superannuation, the Age Pension and other savings, including home equity.

However, as evident from a recent survey, Australia’s retirees do not feel fully supported by the Australia’s retirement funding system.
Household-Capital-Retirement-Income-Review-submission2

The three pillars of retirement funding have not, to date, adequately supported all Australians for several reasons:

  • Australians are living longer, a fact that’s often communicated with rhetoric around this being an economic burden or threat
  • Australia’s retirement system was not designed to support retirees for 20-30 years of life beyond work
  • Superannuation came in too late for most baby boomers; accordingly, the median account is $200,000 at retirement (less for women), which provides income for around 10-15 years
  • The Age Pension is inadequate as a sole source of retirement funding
  • Home equity, the largest pool of savings for most retirees, has not been appropriately and effectively made available to improve retirement funding.

Household Capital’s CEO Dr Josh Funder commented, “By helping retirees to better access and responsibly use home equity for retirement funding, several important areas of social and economic policy can be addressed.”

“Retirees are a large group with significant inaccessible wealth in home equity and major unmet needs in consumption for wellbeing.”

“By unlocking home equity to improve retirement funding, we can enhance both the quality of life in retirement and economic activity.”

Household Capital has made several recommendations to the Retirement Income Review, including:

  • The government’s ‘downsizer measure’ permits the concessional treatment of $300,000/$600,000 (single/couple) from the proceeds of downsizing. Older Australians should be incentivised to use their home equity to improve their retirement funding by having this measure applied to all forms of equity release. This improved policy would support ageing and help the economy with no additional tax expenditure.
  • Australian retirees feel abandoned by the banks and need access to capital and income throughout the course of their retirement. Home equity can provide both capital and income, and help retirees mitigate longevity and contingency risks.
  • There should be a requirement for all superannuation funds to offer a comprehensive retirement income package to members. This would offer appropriate products to ensure retirees have adequate retirement funding and should include access to home equity retirement funding. This should be a legislated minimum service provision for all super funds.
  • Reverse mortgage brokers are exempt from a best interest test and prohibition of commission based sales. Mortgage brokers selling reverse mortgages should not be exempt from tougher regulations that apply in respect of financial advice.
    “The broad policy and legislative framework for responsible access to home equity is in place, is comprehensive and sound,” said Dr Funder.

“There are no major barriers to the transformation of home equity to play a foundation role in funding retirement.”

“Australians know that the family home provides retirement lifestyle, wellbeing, housing and funding. The federal government must support the retirement funding sector to deliver better outcomes in retirement.”

What are you doing with your Household Capital™?

Original article published on Advisors Voice

Applications for credit are subject to eligibility and lending criteria. Fees and charges are payable and terms and conditions apply (available on request). Household Capital Pty Limited is a credit representative (512757) of Mortgage Direct Pty Limited ACN 075 721 434. Australian Credit Licence 391876.

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Government needs to do more on in-home care

Tracey Franks   Content Manager
April 9, 2019 2 MIN

Household Capital, an independent, specialist retirement funding provider, commended the federal government’s announcement that it will fund an additional ten thousand in-home care packages but warned that more needed to be urgently done to meet the needs of ageing Australians

The Royal Commission into Aged Care Quality and Safety recently focused on aged care in the home. The commission was told that while most Australians want to stay in their homes for as long as possible, older Australians face an average wait of 18-24 months for a home care package.

According to the federal government’s own data, published in its report Home care packages program data report 1 October – 31 December 2018, there were 73,978 people waiting on a home care package at their approved level at 31 December 2018.

Josh Funder, Household Capital’s Chief Executive Officer, said the government’s budget measures don’t come close to covering the needs of retired Australians.

“As well as those not receiving any in-home care, at the end of 2018 there were 53,770 people who were waiting for a home care package at their approved level; instead they were making do with a lower level package.

“We need to do more to help the 50,000 retirees struggling to live in their own home because their care needs are not being met.”

Australians prefer to age in home

As suggested by the waiting list for in-home care packages, Australians want to retire at home. This is backed up by two studies in the past five years. One of the key findings from Aegon’s global Retirement Readiness Survey 2018 is the widespread desire to remain in and enjoy one’s own home in retirement. Globally, 70 percent of respondents said remaining in their own home is either ‘extremely’ or ‘very’ important to them as they grow older; as illustrated in the following chart, this is particularly important to Australian retirees.

importance of remaining in own home in retirement- australiadownsizing intentions of australian retirees

“Australian retirees have made it clear that they want to age in their homes,” said Mr Funder.

“As the baby boomers move through retirement, this will put the government of the day under increased pressure to fund the care needs of this growing cohort. We need innovative approaches from both government and private providers to address the aged-care needs of retired Australians.”

Home equity can support in-home care

With so many people preferring to stay in their own home as they age, the untapped savings in the family home is a valuable resource that can be drawn on to fund in-home care and home renovations to enable retirees to live safely and comfortably at home.

Household Capital helps retired Australian homeowners access the value of their homes through a Household Loan. The retiree maintains ownership while drawing on their home equity to finance appropriate renovations and in-home care.

“A Household Loan gives retirees choice and flexibility when it comes to their in-home care needs,” said Mr Funder.

“They’re not beholden to the level of care as decreed by a government bureaucrat; instead they can afford the care they deserve and remain in their family home as long as they wish.”

What are you doing with your Household Capital™?

Original article published on Advisors Voice

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Household Capital enters Australian retirement sector with innovative new retirement loan

Tracey Franks   Content Manager
March 7, 2019 3 MIN

Household Capital, an independent, specialist retirement funding provider, has announced it has entered the Australian retirement sector with an innovative loan product that allows retirees to use equity in the family home to fund retirement expenses, enhance income or provide financial support to their children and other family members.

Household Capital provides Australian home owners access to additional retirement funds by using a low interest rate loan to transfer a portion of the value of their homes into their superannuation fund or an investment account.  Those who access the loan have guaranteed lifelong occupancy of their home and never have to repay more than the value of their home.

The Household Loan is designed to meet the needs of Australian retirees by allowing them to balance their savings, continue to grow their assets during retirement, and harvest a sustainable income from their investments.

Joshua Funder, Chief Executive Officer of Household Capital, said Australians were living longer but many did not have enough super savings to provide sufficient income throughout retirement.

“Retirees want to stay at home, but many are struggling to make ends meet as they age,” Mr Funder said. “Our goal is to deliver a values-based service to help Australian retirees Live Well At Home.

“We combine a retiree’s home equity, superannuation and aged pension to provide adequate, reliable, lifelong retirement funding while the retiree continues to live at home.

“It provides responsible and flexible access to lifetime savings, allowing retirees to make sound economic and lifestyle choices.”

There is currently over $900 billion in untapped home equity owned by Australian retirees, with approximately 80% of retirees owning their own home.

Yet 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 in their final years.

The Household Loan allows retirees to access their home equity to:

  • Enhance retirement income delivered through superannuation or investment accounts
  • Pay for home renovations throughout retirement
  • Fund in-home health and aged-care costs
  • Support other family members with first home deposits and education expenses
  • Fund the transition to supported aged care accommodation
  • Refinance home loans where repayments reduce retirement income
  • Guarantee lifetime home occupancy.

Competitive rates

Household Capital has accessed wholesale funding to offer customers highly competitive interest rates, significantly lower than those previously charged by the banks.

Household Capital does not pay commission or trailing commission to brokers and there are no ‘break costs’ or hidden fees. Instead, Household Capital’s financial services are delivered alongside superannuation funds or financial advisers to fit each retiree’s specific needs.

Household Capital receives an establishment fee to cover the costs of putting the loan in place and interest is charged on the capital drawn from a person’s home. The final amount is paid when the person leaves the home and the house is sold.

Mr Funder said Household Capital’s proposition appealed to a broad range of home owners because it was suitable for all stages of retirement.

“Household Capital’s loan is suitable for people approaching retirement who have a low superannuation balance that needs a boost,” Mr Funder said.  “It also works for those people in mid-retirement who may have depleted their superannuation and need more income, as well as those retirees who may need funding for the transition to supported care.”

Broader economic benefits

Nick Sherry, Household Capital Chair and former Federal Minister for Superannuation, said governments around the world were struggling with the dilemma of ageing populations and smaller workforces – at a time when the costs of healthcare, aged care and pensions are increasing.

With Australia’s median household superannuation balance at retirement currently around $200,000 and the median value of home ownership at retirement $700,000 – Household Capital’s offering potentially releases billions of dollars into the economy to meet the real needs of retirees and their families, Mr Sherry said.

“For many Australians, ageing in the home you’ve been living in helps maintain family and community networks and use of local services,” Mr Sherry said.

“Selling the family home can result in loss of entitlement to the aged pension and the cost of buying and moving to a new home can mean significant loss of capital.

“We want to make a significant positive impact on the wellbeing of retired Australians. The substantial savings held by Australians in their family homes is a largely untapped resource that can be better utilised to help retirees live well at home.”

What are you doing with your Household Capital™?

Original article published on Advisors Voice

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