How Well Has Your Super Aged?
In 1992, superannuation become a compulsory safety net for working Australians. If you’re a baby boomer, you were probably halfway through your working life. Not only did you miss out on early-career super contributions, but you also missed out on compounding returns over time. Consequently, many retirees experience a shortfall in superannuation.
Many Australians find it hard to get through retirement on the Age Pension. While it might be enough to cover the basics, it doesn’t allow for many of life’s little pleasures. Now you can draw on your Household CapitalTM, the equity in your home, to boost your retirement income or use it as a contingency fund, to cover the big bills, buy a new car or keep the house in good repair. This can give you the confidence knowing that you can tackle the bumps along the way.
It's As Easy As 1, 2, 3!
Calculate Your Home Equity
Learn how accessing your home equity could help you consolidate debts or increase your income.
Frequently Asked Questions
Would I be better off by downsizing?
Many retirees rely on an income stream from super and the Age Pension to carry them through retirement. A small super balance, even when supplemented with the Age Pension, may not provide adequate retirement funding, denying retirees the comfortable retirement they’ve worked towards. Some retirees may believe the only solution is to downsize.
A house is made of brick and mortar, but a home is full of memories. Downsizing doesn’t just mean a smaller house, it can mean losing your community too. By topping up your super, you can improve your retirement income and look forward with confidence. A Household Loan can keep you where you belong
— in your own home.
Download our free downsizing guide which covers all the costs of downsizng, the alternatives and impacts on centrelink.
Can I use home equity to top up an investment portfolio?
Some retirees have been able to build up an investment portfolio over the years to provide a source of capital and income. We recognise that most investments go through peaks and troughs. When they do well, an investment portfolio can be a major source of retirement income. In a market downturn, you may prefer not to draw on a diminishing pool of capital as its ability to generate capital over the longer term will be diminished.
A Household Loan can help in two ways. It can be used to supplement your income during market downturns; this avoids further impairment of your investment portfolio and allows it to recover. Your household capital can also be used to add to your portfolio, to ensure it continues to meet your long-term retirement needs and provide you with choice and flexibility in retirement.
Can I use a Household Loan to top up super or other investments?
The purpose of a Household Loan is to take care of your long-term retirement funding needs.
Using it to top up your super or other investments can extend the longevity of the income stream generated by those investments. Customers using a Household Loan for this purpose are required to get independent financial advice.
Why top up Super with your Household Capital™
Retired Australians may not have a lot of super, but they do have more than $1 trillion saved in home equity.
Accessing some of your Household Capital could increase your retirement funding. Topping up your super or other investments can be an effective way to bolster your retirement funding.
Our modelling has shown that an injection of additional funds to a superannuation account can:
- increase the amount of regular pension income you can draw
- increase the longevity of your income stream - in other words, it enables your super to provide income for more of your retirement years.
Note: customer names and images have been changed to protect their privacy.
Julia: A Super Boost
Julia, 72, lives alone in Glen Iris, a leafy suburb in Melbourne’s south-east. She’s well connected with her local community; she’s an active member of Ashburton Bowls, her local bowling club, and regularly attends events run by her local Probus Club.
Julia’s financial adviser referred her to Household Capital. Although she receives a full Age Pension, she had only $10,000 left in super. Julia was concerned she wouldn’t have enough to fund her relatively modest lifestyle.
Although her age and home value would have permitted a larger drawdown, Julia wanted just $80,000, a figure she and her financial adviser believed sufficient to top up her super and extend her retirement income. This also leaves sufficient equity should Julia need further funds in the future, for living or a transition to aged care.