10 Mar, 2019
The idea for Household Capital, which essentially allows retirees to use equity in the family home to fund their retirement expenses, also stemmed back to Funder’s chairmanship of the progressive think tank Per Capita, which was established by technology entrepreneur Evan Thornley in 2007.
“We did a big program there on how to reframe ageing. Historically it was considered a threat, a cost and a grey tsunami. We were the first to lead the way in saying, ‘It is 30 years of life people haven’t had — it is to be celebrated’.’’
Household Capital has now produced a white paper analysing the dilemma of retired Australians — while 80 per cent own their own home, many still experience high levels of relative poverty because they can’t access the equity in their properties.
“The values behind the white paper have drawn together the board members, the advisory board members and the investors in this company,’’ Funder says.
Household Capital has established a $100 million wholesale debt facility with ME Bank that it will use to offer loans to retirees, allowing them to transfer a portion of the value of their homes into their superannuation fund or an investment account.