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A new way to tackle cost-of-living pressures

If rising prices are eating into your savings, unlocking the wealth in your home could help you lead the retirement you deserve.

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  • Finance
  • Read Time: 5 mins

No matter what your stage of life, there is no escaping the rising cost of living. 

Older Australians are typically thought to be protected from the more severe impacts of increasing living costs due to their relatively high rates of home ownership. 

However, according to research by National Seniors Australia in partnership with the investment management company Challenger, ongoing cost–of-living pressures are having an impact on many Australians aged 50 and over. 

The study found:

  • 80% of respondents felt the increasing cost of living had impacted their lifestyle, and 83% believed lifestyle impacts would continue over the next 12 months.

  • The three top concerns were the everyday expenses of health, energy, and groceries.

  • Women and younger age groups were more likely to be concerned.

  • Cutting back on spending was the main way people managed increasing living costs.

  • The wealthiest were also affected, with 59% saying they had cut back their spending.

It’s no surprise that older Australians, especially those on a pension or with a relatively modest amount of super, are looking at ways to increase their purchasing power, either for week-to-week spending or a one-off purchase.

Household Capital CEO Josh Funder said he was not surprised by the findings of the study.

“We’ve seen a significant increase in the number of retired Australians approaching us to unlock the wealth in their home to improve their retirement funding," he said.

“Many cite the cost of living and, for those still paying a mortgage, increased interest rates, as challenging their standard of living.”

The Household Loan offered by Household Capital is a type of reverse mortgage that enables you to draw on the wealth in your own home either to provide a higher level of income or capital for more substantial projects.

Unlocking this wealth in your home can enable you to live the retirement lifestyle you deserve, without having to be concerned about every dollar you spend.

Using a Household Loan, your home wealth can be drawn as a regular income stream, a lump sum, or a mix of capital and income.

Access to capital is important; you may need a new car, want to renovate or repair your home, repay debt, or cover significant medical or dental expenses.

By unlocking your home wealth, you don’t need to draw on your income-producing assets and risk reducing your future income.

The Household Loan is governed by the National Consumer Credit Protection Act 2009, which provides a number of protections. These include lifetime occupancy of your home and a “no negative equity guarantee” that means you or your estate cannot owe more than your home is worth, regardless of what happens to the value of your property.

If you want to know more, download Household Capital's free e-guide 6 Ways to Use Your Home Equity

Or use the Home Equity Calculator to calculate the equity in your home.

Prefer to speak to a real person?

Speak with one of Household Capital’s retirement specialists for a 15-minute no-obligation call on 1300 699 624

Or book a time that suits you to ask questions and discuss your needs. Schedule a call.

Disclaimer: Applications for credit are subject to eligibility and lending criteria. Fees and charges are payable, and terms and conditions apply (available upon request). Household Capital Pty Limited ACN 618 068 214, Australian Credit Licence 545906, is the Servicer for the credit provider Household Capital Services Pty Limited ACN 625 860 764. 

National Seniors Australia Disclaimer: This content includes sponsored advertising which helps fund our important advocacy work. Please note that the information provided and opinions expressed in this advertising material are solely those of the advertiser. We encourage you to carefully evaluate and consider any advertised offering before making a purchase. Any transactions or interactions between you and the advertiser are solely between you and the advertiser.

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