TV Advertorial – Working With Retirees to Improve Their Retirement Funding
Our retirement specialist Fiona Navarro chats to channel 7 host Jamie about the financial concerns held by some retired Australians and how Household Capital can help. She explains how retirees can access their home equity and use it to improve their retirement funding. Fiona also outlines three steps retirees can take to have greater confidence in their retirement.
Jamie: When we think of retirement we picture those ads featuring a smiling couple driving along in their convertible and wind in their hair. Fiona, is that what the average retirement really looks like?
Fiona: Jamie, there's no average retirement and many older Australians are actually doing it tough. They're worried about how they're going to get by. So we're living longer, but our retirement system just wasn't designed to support us for 20 to 30 years of life beyond work.
Jamie: Isn't that what's Super's supposed to do?
Fiona: Well, Jamie, you're right, but Super came in too late for most of Australia's baby boomers. And the median Super balance at retirement for boomers is $200,000. It's a lot less for women. And when you consider the growing number of Australians who are retiring with a mortgage, the rising cost of living, and spiraling health expenses, then Super even with the age pension is simply not enough.
Jamie: So, I guess retired Australians are worried about how they're going to live well for 20 plus years.
Fiona: Yeah. The people we speak to are worried about how to fund their retirement, but they don't need to be.
Jamie: Right. So how can Household Capital help?
Fiona: Well, retirees can use the wealth in their home, their own household capital to improve their retirement funding. And one of our clients was a lovely 73-year-old woman from the New South Wales, North Coast. So, she's had an interest-only loan, she faithfully paid each month for 14 years from her pension.
Fiona: Her bank suddenly wanted her to repay the principle too, which she couldn't do on her pension. So she was devastated. She didn't want to leave her home and her community.
Fiona: And we were able to refinance her mortgage and at a lower rate, she now has more income, guaranteed occupancy, and more confidence in her future.
Jamie: Oh, what a great story. How else are retirees using their Household Capital?
Fiona: Well, Jamie, there are a number of ways, so many need more income and they use our regular draw-down feature for a fortnightly or a monthly payment.
Jamie: Yeah, nice. So refinancing and increased income. That's great.
Fiona: Yep. Others need capital, and it might be to modify their home or pay for medical costs. And some just want the peace of mind that comes from having a contingency fund for those unexpected expenses.
Jamie: Yeah. Capital is so important. What about aged care?
Fiona: So, our funding for in-home or residential aged care gives older Australians choice and flexibility when it comes to their care needs.
Fiona: And lastly, some of our customers are actually well set up for their own retirement and they use Household Capital, their Household Capital, be the bank of mom and dad to help their kids create their own household capital.
Jamie: Yeah. That's so important too. Now how can retirees apply to access their Household Capital?
Fiona: It's a really easy three-step process, Jamie. So, firstly people can use our simple online calculator to see whether they're eligible and how much Household Capital they can access.
Fiona: So in this example, we have a couple aged, 70 and 74 with a million dollar home in Strathfield. And they could borrow up to $250,000.
Fiona: The second step is to meet with one of our retirement specialists because personal one-on-one service is important to us.
Fiona: And the third step is the application process. And there's always someone available to help along the way.
Jamie: What steps should retirees take to have confidence in their retirement?
Fiona: That's a great question. So retirees should do three things. You should check your pension and entitlements, make sure your Super's in order, and then work out what you're going to do with your Household Capital?
Jamie: Fiona, what sets Household Capital apart from others?
Fiona: Well, firstly, we offer Australia's lowest rate, reverse mortgage, and that comes with personalized service and a focus on responsible lending because we really want to help people improve their long-term retirement funding. So, Australians feel safe in their home and we want them to feel safe in their retirement too.
Jamie: Yeah. Nice.
Jamie: Thanks, Fiona. Number's on the screen. Give them a call.
Note: This advertisement was filmed before Covid-19 restrictions