A retirement villa, a lifestyle village, downsizing to a small unit or apartment…they’re generally not at the top of the bucket list for most Australian retirees. Australians prefer to stay in their own home in retirement - and why not? Your home is the hub of family life - in some cases, for many years. It has borne witness to events and milestones, and many memories are stored within its walls. A familiar location can influence your perception of safety, help to maintain social connections within your community, and provide access to services and proximity to family and friends. The one thing that can hold retirees back from enjoying a comfortable retirement in their family home is money - or lack of it. Did you know your family home could hold the key to improved retirement funding? This guide examines strategies for using your home equity - the savings in your home - to provide access to income and capital. We detail the pros and cons of each strategy so you can determine which might be the best for you.
What you get in the home equity guide
You've worked hard and have earned a comfortable retirement. The equity in your home - your Household CapitalTM - can be added to your super and any Age Pension entitlement to increase your retirement funding. This guide includes an explanation of home equity; how it works and how you can access it, including:
- What is home equity and how it works?
- Downsizing - what it entails, the pros and cons
- Home reversion schemes - how they work, the pros and cons
- The Centrelink Pension Loans Scheme - how it varies from a traditional reverse mortgage, pros and cons
- Reverse mortgage - a compound interest explainer, pros and cons, and other important details.
Who should download this guide?
If you're considering using home equity, you should feel confident the choice you make is the right one for you and your family. Download this guide if:
- You are aged 60 plus
- You’re already retired or are planning to retire in the near future
- You have equity savings in your home
- You would like to know more about the different options available to you
- You would like to increase your retirement funding so you can Live Well At Home.
What are you doing with your Household Capital?