Month: July 2014

Equity Release OZ alert to market failure.

Media Report:

AB+F | Australian Banking & Finance.

Mismatch in downsizing needs of older Australians | Australian Ageing AgendaAustralian Ageing Agenda.

Senior Australians utilise their homes more than official statistics indicate and fewer downsize that is commonly thought.

Sales of equity release hit 10-year high – Retirement – News – Moneyfacts.

The UK Equity Release market has had its busiest quarter in almost a decade. MoneyFacts UK

Demand Vs. Supply: Australias Aged Care Puzzle.

 

Home equity release will drive RADs | Australian Ageing AgendaAustralian Ageing Agenda.

Refundable Accommodation Deposits (“RAD’s”) will be included in the means test. Consumers need to decide whether to sell their home or use Equity Release products to fund their entry to Residential Aged Care. But the Product List is very short!

http://www.theadviser.com.au/breaking-news/30514-new-product-will-let-people-sell-shares-in-their-home

Editor’s Comment:

There can be no doubt that better equity release products need to emerge so that Senior Australians have improved choices for accessing their housing wealth.

However, make no mistake, this is not an opportunity for Mortgage Brokers to make a “Quick Buck”! These transactions have a significant impact on consumers and they take time and effort to settle.

Whilst I welcome the announcement by DomaCom that they are working on a new Equity Release product, they will need to have proper regard for this market and some of the comments in this article concern me.

Disclosure:
I am the immediate-past CEO of the industry body (SEQUAL) and recently worked with DomaCom to set up their practitioner accreditation program. I am not associated with this product and process.

Kevin Conlon
Live Long… Live Well!

 

Unless Australians work longer or contribute more, their superannuation accumulation will likely be inadequate to support them in retirement.

A new report from Deloitte actuaries & Consultants looks at what the Superannuation Industry, Governments and Members can do to secure a better financial future for Retiring Australians.

 

Deloitte | Adequacy and the Australian Superannuation System, Financial Services.

The family home is likely to prove more helpful than the pension for overcoming the challenge of Living Longer and wanting to Live Well…

Over-55s forced to use house equity to pay off debts – Telegraph.

Pension indexation – News – YOURLifeChoices Australia.

“The rationale behind the change to indexation, according to Treasurer Joe Hockey, is that with so many Australians  living longer, we can no longer afford to cover the costs of the current Age Pension”.