Saturday, June 25, 2022

Living Comfortably in Retirement – With ASAG Safely and in Control

The Future of Retirement

Take Control with an ASAG Equity Release

New equity release specialists like Australian Seniors Advisory Group (ASAG) are paving the way for the future of retirement living by giving retirees safe, flexible and customised access to their property portfolio.   

Designed to assist in the provision of a comfortable retirement today, these newly accessible, safe and individualised equity release products are giving retirement planning control, back to seniors.

After decades of sacrifice and planning for their future, the reward for many seniors today is their property portfolio. The main residence, and of course any investment properties, is in most cases generating their biggest appreciating return on investment.

Today’s seniors have expressed clearly that traditional retirement assets of aged pension, superannuation and savings do not always provide adequate financial confidence for a large percentage of single seniors and indeed retired couples. 

Boosting Retirement Income Safely
Thanks to the findings of advisory groups, Government now recognises that alongside these assets, safe access to your property portfolio can significantly boost retirement income and therefore the quality of retirement for today’s increasingly ageing population 1.

Property equity release financing today offers a solution in meeting the needs of the Australian senior’s community with the protections offered by strict regulation, allowing seniors to access finance and gain greater financial security while enjoying a more comfortable, well-earned retirement.

“Accumulated wealth does not equal living comfortably. Access to it does.”

Australian Seniors, the Richest in the World
In retirement, your sense of freedom is largely dependent on your financial stability. The good news is that Australians are the richest retirees in the world 2, with wealth largely comprised of a lifelong investment in property. 

According to the 2018 Global Wealth Report, Australian seniors are nearly three times wealthier than their American counterparts. Yet for many Australians dependent on the aged pension, superannuation and savings, retirement living is modest at best.

Accessing Preserved Wealth
80% of our seniors enter retirement owning their own home, after decades of diligence and sacrifice 3. But as a nation of homeowners and home builders whose wealth is in fixed assets, access to these hard earned funds become the real issue, until now.

Today’s equity release products are regulated and designed to provide you with control, allowing you to enjoy the wealth you have created.

Enjoy Your Wealth – Access Your Investment
Combining Australia’s ageing population and high percentage of home ownership equity release products are accessible to many Australian seniors. A homeowner who meets loan approval and simple age criteria can create a personalised schedule of equity disbursement in either a lump sum, a line of credit or a schedule of fixed income payments designed to be a simple income supplement. 

The process is further regulated for your protection with companies like ASAG adopting recommended maximum borrowing and repayment parameters measured against the value of your property.

Government Protections
Benefits of equity release and specifically reverse mortgage allows no change to the property title so all future capital gains on the property are still there to be enjoy by the homeowner. If you wish, no repayments are required until the end of the loan when you leave the property. Your permanent occupancy is guaranteed, so you can continue to own and live in your home.

Alongside savings, superannuation and the aged pension equity release allows access to the wealth you created through a lifetime of hard work, potentially improving retirement for millions of Australian seniors. 

The Importance of Accessing Home Equity
Federal recognition of how important access to property equity is in improving the quality of retirement living has prompted the swift development of the market 4

Customer protection is a priority and the government has introduced significant regulations such as the ‘No Negative Equity Guarantee’ as just one example. With these regulations in place, consumers are growing in confidence with reports indicating that more retirees are now considering the release of their home equity to fund their retirement.

“Research indicates 43% of retirees would now consider releasing up to 13% of their home equity.” 5

This statistic is just the tipping point. Population modelling shows that the number of Australian seniors in the over 65 category will likely triple in number by 2066, from 5+ million to 15+ million. So, access to your property’s accumulated wealth is now vital for millions in or considering retirement. 

The Four Pillars of Retirement Planning
Government’s objective is to provide seniors safe and flexible access to their wealth and help in achieving financial peace of mind in retirement. 

Sensible retirement planning rightly now includes the four pillars of retirement funding. The key being the normalisation of receiving income from assets i.e. your property’s equity.

Today’s Investment Environment & the Normalisation of Equity Release
In today’s safe and controllable environment, in a period of sustained low-interest rates, accessing wealth in your property should be considered a normal part of your personal retirement plan to live your best retirement life. You planned your property ownership so it’s normal to plan access to some of it, at a time you need it and deserve to enjoy it most.

Simplified & Transparent
As an example of the improvements in equity release, companies like ASAG are employing state-of-the-art online application processes built to clearly explain the product, its benefits and your responsibilities. This allows Australian seniors access to all of the information and their funds seamlessly by turning the locked away wealth in your property into available assets at a time you need them. 

Calculating Your Available Equity
Calculate the maximum amount you may be eligible to borrow by inputting your age and home value using the Government’s MoneySmart website or via the ASAG website. Find out how an individually tailored Equity Release can help you gain greater financial security, and a better retirement by visiting www.asagfirst.com.au, or call 1300 002 724.

Content Provided by Australian Seniors Advisory Group, ASAG.
Any advice contained in this document is general in nature and does not take into account your personal circumstances. You should consider whether the information is appropriate to your needs and, if necessary, seek professional advice. Loans are subject to loan approval criteria. Terms and Conditions, fees and charges apply. Credit provided by Panthera Leo Pty Ltd, Australian Credit Licence 481816.

1 2020 Retirement Income Review Report findings, p.19 
2 2018 Global Wealth Report  
3 08/2018 ASIC Review of Reverse Mortgage Lending In Australia Report 586
4 2020 Australian Report to Treasury Retirement Income Review findings, p.19
5 RMIT University Reverse Mortgages Financing Ageing In Place 

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