Savings Shortfall
Recently there has been much comment about the ‘savings shortfall’ that many
senior Australians can expect to be faced with in their retirement.
This ‘savings shortfall’ represents the difference between the level of
income required to support today’s seniors in retirement, and the actual income
available from their savings, including superannuation, together with any
pension entitlement; the reality for many seniors is that their savings in
retirement will simply not last long enough.
The issue has become an increasing focus of many in society, including the
Government, senior’s organisations, seniors themselves and their families. The
media is challenging the issue with increasing frequency, and there is much
debate in the community as to how best to manage the issue.
Support Ourselves
We are encouraged to investigate other means of supporting ourselves in
retirement rather than simply relying on the aged pension and whilst peak
senior’s organisations can lobby the government with ideas, there is a real
need today for many seniors to address this issue for themselves.
There are a number of options, which can be discussed with family, advisers
and Centrelink. These can include downsizing your home, borrowing from your
family, re-organising your expenses and budgeting; even working again. A new
option that is now increasingly being used is to release a portion of the
equity in your residential property and have it better support you in
retirement.
New Option
This option is called ‘Equity Release’ and refers to the release of equity
in your property, providing you with additional funds to support your
retirement. There are typically two forms of Equity Release products; funds
released via a mortgage secured on your home, and funds released via the sale
of a portion of your home. The only form of Equity Release available in
Australia today is the lifetime mortgage, often referred to as a reverse
mortgage.
SEQUAL
With the increasing popularity of Equity Release options, the Senior
Australians Equity Release Association of Lenders (SEQUAL) has been
established. The options provided by SEQUAL members are structured to adhere to
a strict Code of Conduct designed to protect you, the consumer.
Whilst, the option of accessing the equity in your property during
retirement has been available since the late 1980’s, the recent attention and
popularity of such products is attracting many more Equity Release products
into the market.
For many seniors it is a matter of simply wanting to stay in the home and community
they know and enjoy, as they continue to live longer lives.
The purpose of this website is not to recommend any particular option. The
aim is solely to help senior Australians understand the mortgage option and
provide contact information for those Equity Release providers who are members
of SEQUAL, and so assist seniors in making an informed and sensible choice.
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About Equity Release Market and SEQUAL 
