10 Mar, 2019
There is an estimated $900 billion in untapped home equity in Australia, which can now be tapped to help fund retirement or subvert the disinheritance of baby boomers’ children.
Research undertaken by Household Capital shows that 80 per cent of retirees own their home. The same group has released a product that allows retirees to tap into their home equity to help with expenses, enhance their income and fund the later years of retirement.
Many go into retirement with just $200,000 in superannuation – enough to fund around 10 to 15 years of retirement. However, many are living beyond those 10 to 15 years without the necessary financial support.
“Many people aren’t financially prepared to fund 25 or 30 years of retirement,” said Household Capital chief Joshua Funder.