Joshua Funder

Household Capital, a leading Australian provider of home equity retirement funding, today announced the completion of HHC 2025-1 RMBS Trust, a $270m mortgage securitisation dual-rated by Moody’s and S&P. Citigroup Global Markets Australia (“Citi”) acted as Arranger and Citi and Macquarie Debt Markets team (“Macquarie”) were Joint Lead Managers on the transaction.

The innovative mortgage securitisation allows Household Capital to continue to meet the increasing demand from retired Australian homeowners seeking responsible, long-term funding for their retirement needs – a sector based on more than $1.3 trillion in retiree home equity available today.

The Household Capital portfolio attracted investment from global insurance, superannuation, banking and institutional credit fund investors from Australia, US, UK, EU and Hong Kong. The final transaction had strong investor demand and was more than 4x covered.  The senior A Note was rated AAA by S&P and Aa2 by Moody’s with an average weighted life of 3.4years based on an underlying portfolio loan-to-value ratio of less than 25%. An innovative subordinate X Note with an average weighted life of 1.8years was introduced in the securitisation to provide sustainable originator funding of mortgages with lower cashflows.

The HHC 2025-1 transaction builds on the successful inaugural 2024-1 transaction to efficiently allow the trust to fund ongoing customer drawdowns on their home equity under their existing approved amounts as well as through potential future increases to their credit contracts – an important structural feature to ensure home equity is made available by the trust to fund the current and future needs of retirees.

The Household Capital mortgage securities were attractive to global investors based on meeting international risk retention standards.  Household Capital intends to list the notes on the ASX subsequent to the transaction.

Household Capital is a specialist 60+ lender, originating mortgages that don’t require the borrower to have an income or make regular repayments and provides a range of home wealth access options distributed direct to customers as well as via partners, advisers and brokers. The company began mortgage origination in 2019 and has built a contracted mortgage portfolio of over AUD$730m.

Household Capital CEO, Joshua Funder, said “Our latest innovative mortgage portfolio securitisation is a great outcome for Australian retirees and a big step forward in the evolution of the sector. We are delighted to work with Citi and Macquarie to deliver the high quality of our customers and the low-risk nature of our mortgages to local and global investors.   Our scalable securitisation program is essential to sustainably scale retirement housing and funding and help Australians meet the challenge of an aging population”.

“We were delighted to attract strong, global, diverse investor demand for our securitisation.  The way Australian retirees access the wealth in their homes using a Household Loan is different from similar approaches here and elsewhere. The rating on our portfolio reflects a series of key differentiators of Household Capital equity release mortgages: higher voluntary discharge, shorter duration, lower negative equity risk and higher cashflows. We have achieved a very strong dual rating and continued to innovate so these securities deliver for our customers, our investors and Household Capital” Funder said.

Nick Sherry, Household Capital Chair, said “Household Capital continues to lead the way in providing access to home wealth for older Australians. The securitisation of our mortgage portfolio is a major milestone in providing billions of dollars each year in additional funding for an ageing population.”

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Joshua Funder

Household Capital, a leading Australian provider of home equity retirement funding, today announced the completion of HHC 2024-1 RMBS Trust, a $263m mortgage securitisation rated by Moody’s. The Arranger and Sole Lead Manager on the transaction was Citigroup Global Markets Australia.

The innovative mortgage securitisation will allow Household Capital to continue to meet the increasing demand from retired Australian homeowners who are seeking responsible, long-term funding for their retirement needs – a segment of the market which has more than $1trillion in home equity available today.

Household Capital is a specialist 60+ lender, originating mortgages which don’t require the borrower to have an income or make regular repayments and provides a range of home wealth access options distributed direct to customer as well as via partners, advisers and brokers. The company began mortgage origination in 2019 and has built a mortgage portfolio of over $420m.
The Household Capital portfolio attracted widespread interest from insurance, superannuation, banking and institutional credit fund investors. The final transaction was 1.6 x covered and upsized.

Household Capital CEO, Joshua Funder, said “Our inaugural mortgage portfolio securitisation is a great outcome for Australian retirees and a big step forward in the evolution of Household Capital. The quality of our customers and the low risk nature of the mortgages we originate were critical in attracting local and global investors to sustainably scale retirement housing and funding and help Australians meet the challenge of an ageing population”.

The facility will refinance part of Household Capital’s existing mortgage portfolio and is based on a mortgage portfolio with an average loan-to-value ratio of less than 25%. “The way Australian retirees access the wealth in their homes using a Household Loan is different from similar approaches elsewhere.  The rating on our portfolio reflects a series of key differentiators of Australian equity release mortgages: higher voluntary discharge, shorter duration, lower negative equity risk and higher cashflows. We have achieved a strong Moody’s rating and innovated significantly to obtain a premium to par for the rated notes” Funder said.

Another innovative feature of the HHC 2024-1 RMBS Trust is that it will allow Household Capital customers to continue to draw on their home equity under their existing approved amounts as well as through potential future increases to their credit contracts.

Nick Sherry, Household Capital Chair, said “Household Capital has pioneered the delivery of home wealth to Australians. The securitisation of our mortgage portfolio is a milestone in the growth of our business.”

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Joshua Funder

Household Capital, a leading independent Australian retirement funding provider, is pleased to announce PEP will participate in a financing package to provide retirement funding and housing to Australian seniors.

PEP will invest in the mezzanine debt portion of the wholesale funding facility, joining existing mezzanine debt provider IFM Investors, the industry super-owned global fund manager, as well as senior financier Citi, one of the world’s biggest banks.

The funding provides Household Capital with access to over $600 million of wholesale funding to expand residential mortgage origination through 2023.

“Many Australians are being challenged by cost of living pressures and higher interest payments,” said Dr Joshua Funder, CEO of Household Capital.

“This funding will allow Household Capital to meet increasing demand from Australian homeowners to access the wealth in their homes and support adequate retirement funding, housing and care.”

Household Capital already counts UK-based Legal & General and Sydney-based Helia Group Ltd as strategic corporate equity investors and partners. “PEP brings deep experience in wholesale debt, structured finance and scaling business growth,” said Funder.

“We are delighted to secure PEP as a strategic partner and investor to help grow our business.”

Jake Haines, PEP Managing Director, said: “Household Capital has pioneered innovative, scalable debt funding to meet the retirement funding and housing needs of an ageing population.

“PEP identified Household Capital as a high-quality opportunity and is delighted to partner with a great company and to expand an important new category.”

Demographers indicate that more than five million Australian baby boomers face the prospect of inadequate superannuation balances thanks to increasing life expectancy.

The median household superannuation balance at retirement is under $200,000 because a low 3% compulsory contribution began halfway through the working lives of baby boomers.  At the same time, Australian retirees are the wealthiest in the world, with median home equity for retired homeowners over $800,000.

Nick Sherry, Household Capital Chairman and former Federal Minister for Superannuation and Assistant Treasurer, said the funding arrangement would allow Household Capital to deliver back to Australians their own wealth, stored in the value of their homes.

“The wealth of baby boomers is mostly tied up in their home, and our mission is to help Australians Live Well at Home,” said Sherry.

“Working together, we can help deliver widespread access to some of the $1 trillion in home equity wealth already saved by Australian retirees, providing certain, lifelong retirement funding at home. The family home has always been a missing link in the nation’s retirement funding system.”

Dr Funder said that Household Capital remained focused on responding to the Australian Government’s Retirement Income Review and Retirement Income Covenant, both of which highlighted the important role home equity can play in meeting people’s financial needs in retirement.

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Parkes replaces Paul Murray who had been with HHC for almost five years since the Series A financing. Parkes brings more than 25 years of financial leadership experience to Household Capital, including mortgage distribution and origination, accounting, audit, risk, compliance and securitisation.

Prior to joining Household Capital, Parkes held a number of senior finance roles covering mortgage distribution and non-bank lending, including CFO at Mortgage Choice Limited, CFO at Resimac Limited and CFO at Homeloans Limited.

He also brings extensive experience in Australian banking, credit and wealth from both Westpac and St George. He holds a Bachelor of Economics (U. Syd), MBA (Charles Sturt) and is a member of the Institute of Chartered Accountants of Australia and New Zealand.

“We are delighted to welcome Ian to the Household Capital team,” said Joshua Funder, founder and CEO of Household Capital.

“Ian brings extensive end-to-end mortgage and finance experience. His leadership will enable Household Capital to continue to lead the delivery of innovative offerings to help more senior Australians achieve a secure and comfortable retirement and have confidence in their future.”

“Household Capital is an exciting, values-based growth opportunity for me,” said Parkes.

“I’m looking forward to working with the team to further build Household Capital and further develop this significant new category to meet the financial needs of an ageing population.”

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Joshua Funder

Household Capital has announced its acquisition of an innovative home equity access start-up, Pension Boost.

Pension Boost takes the hassle out of the process of accessing the HEAS with Centrelink for its retiree customers. It has created a straight-forward proposition – it educates consumers on the HEAS, simplifies the application process, and undertakes all follow-up with the relevant government agencies. Since launch in 2019, Pension Boost has originated around 30 percent of HEAS applicants.

Household Capital CEO, Dr Joshua Funder, says the acquisition will enable Household Capital to provide a trusted ‘one-stop-shop’ service for Australian retirees to access their home equity to meet their retirement funding needs.

“The acquisition expands Household Capital’s proposition, widens its market reach and is consistent with our strategy to be the most trusted provider in the Australian home equity release market,” said Dr Funder.

“The combined business will position us to be the leading provider of home equity retirement funding.  Together we play a critical role in meeting the needs of an ageing population, particularly as many Australian retirees have inadequate super saved to meet their needs.”

The government’s Home Equity Access Scheme is exhibiting similar growth rates to Australia’s home equity access market, currently circa 40 percent per annum, and is expected to become a more material component of the home equity market over time.

“2023 will be the biggest ever year in Australian home equity retirement funding, forecast at over $750 million – this is an inflection point in home equity as the third pillar of retirement housing and funding,” said Dr Funder.

Pension Boost was started by Paul Rogan, a renowned innovator having co-founded Retirement Essentials after a long career at Challenger. Paul will join Household Capital’s Advisory Board, to share his expertise and experience with Household Capital’s team.

Commenting on the transaction, Paul Rogan said, “It’s clear we both share the same ambition to cement home equity access as the third pillar of retirement funding.”

“Bringing the two businesses together establishes the leading platform for retirees looking to improve their retirement funding.”

“The combined platform also enables superfunds and financial advisers to support their retiree members or clients”.

Nick Sherry, Chair of Household Capital said, “The Pension Boost platform, Paul, and the team, extends our capability and will complement our mission to deliver scaled access to home equity.”

“We believe our proposition, together with superannuation and the Age Pension, provides the full package for retirees.”

Accessing home equity provides older Australians with flexibility and choice. It provides them the opportunity to get themselves ‘retirement ready’ by refinancing an existing mortgage or other debt or renovating their home to live comfortably and safely throughout retirement. Importantly, during times of market volatility, retirees can draw on home equity rather than income producing assets, preserving the longevity of those assets.

The acquisition of Pension Boost will enable Household Capital to help retirees, as well as retirement providers such as super funds, choose the best solution for them now and in the future as their needs change.

Household Capital Advisory Board Chair, Deborah Ralston, said “Home equity is a large part of a retiree’s overall savings; the integrated platform that Josh, Paul and the team have created is an innovative way to access the third pillar of retirement funding.”

The acquisition will position Household Capital as the leading provider of home equity access in 2023.

“We are excited to bring the two businesses together to explore ways to help Australia’s retirees improve their retirement funding options with the best mix of products, interest rates and service,” said Dr Funder.

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Joshua Funder

Household Capital, a leading Australian provider of home equity retirement funding, is pleased to announce it has closed a series C capital raise, with Genworth Financial Mortgage Insurance (Genworth) becoming a strategic partner in the business.

Genworth joins Legal & General UK (L&G) as strategic investment partners in Household Capital.

Household Capital’s Chief Executive Officer, Dr Joshua Funder, welcomed Genworth as a strategic investor, saying the fundraising allows Household Capital to continue to meet growing demand from Australian retirees seeking to access responsible, long-term funding to meet their retirement needs.

“Genworth understands Australia’s home ownership market and has deep expertise in mortgage and risk evaluation,” said Dr Funder.

“Home equity retirement funding plays a critical role in meeting the needs of an ageing population, particularly as many Australian retirees have insufficient funds in their pension accounts because compulsory superannuation payments by employers only started in 1992.”

Genworth’s Chief Executive Officer, Pauline Blight-Johnston, said: “Genworth is delighted to have entered a strategic partnership with Household Capital. This investment demonstrates a significant step toward achieving our purpose of accelerating financial wellbeing through home ownership.

“Genworth is committed to helping Australians through a range of solutions along all stages of their property journey. Our strategic partnership with Household Capital, together with L&G’s deep expertise in equity release, will enable us to deliver on this commitment to Australia’s retirees.”

Lisa Griffin, Chief Commercial Officer – New Ventures at Genworth, will join the Household Capital board of directors.

Lorna Shah, Managing Director, Retail Retirement, Legal & General, said: “We welcome Genworth in joining Household Capital as a strategic partner. The Australian equity release market is extremely promising, and Household Capital is at the forefront, expanding the retirement funding and housing options available to Australian retirees.”

Dr Funder said that with the conclusion of the Series C capital raise, Household Capital is now focused on growing its share of the home equity retirement funding market and improving access to long term retirement funding options to people throughout Australia.

“Together with our strategic partners Genworth and L&G, Household Capital looks forward to providing financial assistance for retirees and delivering on our mission to help Australians ‘Live Well At Home’.”

“There are currently around five million Australians, or about a fifth of the population, who are retired, and this group has more than a $1 trillion in home equity available today,” said Dr Funder.

“Home equity is the missing link in the nation’s retirement funding system. We work closely with financial advisers and brokers to deliver their clients access to capital and enhanced income in retirement. The high level of service we provide to financial advisers and their clients underpins our success.”

Drawing on home equity provides older Australians with flexibility and choice. It provides them the opportunity to get themselves ‘retirement ready’: financially, by refinancing an existing mortgage or other debt, or renovating their home to live comfortably and safely at home. Importantly, during times of market volatility, retirees can draw on home equity rather than income producing assets, preserving the longevity of those assets.

A number of our clients who are well established for retirement draw on their home equity to be the bank of mum and dad, to help their children or grandchildren buy their first home, pay out a mortgage or cover educational expenses.

On 13 October 2022 Household Capital was announced as placing second (to global finance giant Visa) in the AFR Boss Innovation Awards in the Banking, Superannuation and Financial Services.

In December 2021, Household Capital completed a $300 million financing package provided by Citi, one of the world’s biggest banks, and IFM Investors, the industry super-owned global fund manager.

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Josh Funder

Australian retirees have had enough of lacklustre leadership and plan to take their vote away from the major parties, interim data from the latest survey of older Australians shows.

At the last election, older Australian voters determined the outcome, sending a strong signal not to burden their residential property with new taxes or take away important sources of income. Since then, those same senior citizens have had their health, incomes and lifestyle hit hard by a pandemic, lockdown and a rapidly spiralling cost of living.

Interim results from the most recent 2022 quarterly survey undertaken by Household Capital in partnership with Your Life Choices showed that, collectively, Australia’s retirees may underpin a significant swing away from the major parties in the upcoming election. Historically, 86% of respondents vote for one of the two majors; voting intentions, according to the latest survey, suggest this is set to drop to 69%.

Each quarter, over 5000 Australians over age 50 respond to the detailed survey to have their voices heard on the major issues they face.  The survey is structured in collaboration with UNSW/Centre of Excellence for Population Aging Research.

The results from this year’s earlier survey showed more than 78% of older Australians were either “concerned” or “very concerned” about the potential introduction of an inheritance tax.  It also showed respondents expressing high levels of concern at the prospect of the cashless welfare card being extended to pensioners, the lack of response to the Aged Care Royal Commission and inaction on climate change.

Voting intentions

Independents and the Greens are set to be the major beneficiaries of this swing, with Independents set to grow from 2.8% to 8.7% of the vote.

Voting intentions vary according to age.

• Only 45% of respondents aged 60-64 who have voted Labor previously expect to vote Labor later this month, compared to 73% of LNP voters. Labor voters in this age group indicated their vote will instead go to Greens (18%) and Independent (13%).
• Two-thirds of voters aged 65-69 intend to vote for a major party, with an estimated 12% cross-party swing between Labor and the LNP.
• Respondents aged 70-74 have indicated intent to direct the largest overall proportion to Independents.
• The largest swings away from the majors to come from those aged 75+. The major parties have traditionally commanded almost 90% of the vote from this cohort; voting intentions could see this fall to just over 70%.

Retirement is not meeting the expectations of a generation

The survey showed that it was evident that retirement was not meeting the challenges of an ageing population; 70% of respondent’s confirmed this. This finding was true across all levels of wealth, although older retirees were somewhat more positive. Labor voters were typically more negative, but Liberal voters in wealthier postcodes were among the most negative of all.

“Retirement should be a time when older Australians can relax and enjoy life with confidence,” said Household Capital CEO Dr Josh Funder.

“Instead, for many it’s a time burdened with worry about accessing appropriate care and support and worry about the rising cost of living and outliving retirement savings.

“Whatever the composition of the next government, it needs to commit to clear principles that deliver better outcomes for our seniors and support innovative, scalable funding models to meet the challenges of retirement housing, funding and aged care.”

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Josh Funder

Household Capital, a leading Australian provider of home equity retirement funding, called on superannuation funds to provide more solutions for their members to help them navigate and plan through the various stages of retirement and aged care.

“It’s imperative that superannuation funds deliver comprehensive solutions to members to ensure they can live well in retirement,” said Dr Joshua Funder, CEO of Household Capital.

“The reality is, for many Australian retirees, they do not have enough funds in their superannuation accounts when they retire. The simple fact is that baby boomers, who are in the process of retiring, have not captured a full working life of superannuation contributions.”

Dr Funder said it was important that the private sector worked closely with superannuation funds to provide the best outcomes for retirement planning and funding.

“Governments cannot be expected to completely carry the responsibility of retirement funding and aged care, particularly given that borrowing costs are rising globally and increasing taxes on younger generations to fund an ageing population would not be acceptable,” said Dr Funder.

“Super funds are the most trusted providers of retirement funding, but for most members in retirement now superannuation alone is inadequate to fund long and active retirement.

“For Australians in retirement, median  home equity already saved is around $800,000, three to four times the value of household superannuation.

“Australian retirees have already saved over $1 trillion in home equity which can transform retirement outcomes. Delivering straightforward access to superannuation and home equity retirement funding is what retirees need to access their wealth and have confidence in the system.”

In 2019, the Retirement Income Review led the world in declaring home equity the third pillar of Australian Retirement Funding. The subsequent Retirement Income Covenant means that from 1 July 2022, superannuation funds will have an obligation to provide cohorts of members with retirement funding strategies including not just superannuation but also access to other assets.

“Australian median retirees are the richest in the world, however home equity is typically three-to-four times the value of median superannuation,” said Dr Funder.

“Baby boomers do have considerable wealth if we factor in the value of their home as an asset.

“What’s critical is to consider ways to allow the nation’s retirees to safely and responsibly unlock the value stored in their home alongside their superannuation. ”

Professor Deborah Ralston, co-author of the Retirement Income Review and chair of Household Capital’s Advisory Board, described the retirement income covenant as about providing assistance to individuals going into retirement to set themselves up.

“Ideally, in retirement you want a reliable income stream, you want access from time to time to small amounts of capital, and thirdly, you want to have some kind of longevity risk protection so you don’t have that fear always of running out of funds,” said Professor Ralston.

“Retirement planning doesn’t end at retirement, that’s important to know. That’s also a dynamic period of time; at retirement 45% of people are on the Age Pension, but by the age of 80, around 80% of people are reliant on the pension because superannuation balances are not significant as yet for most people.”

Dr Funder said retired Australians deserve more. “Home equity can play a major role in providing access to wealth, adequate retirement funding, and confidence for a generation,” he said.

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Josh Funder

Household Capital, a leading Australian provider of home equity retirement funding, said today the results of its latest quarterly survey of older Australians showed 78% of retirees were concerned, or very concerned, about about the federal government implementing an inheritance tax.

“We are heading into a federal election where more than 50% of eligible voters will be over 50 years of age,” said Dr Joshua Funder, Chief Executive Officer of Household Capital. “There is real concern among older Australians about the threat of new taxes that could negatively impact their retirement plans.”

The survey was undertaken by Household Capital in partnership with Your Life Choices.  Each quarter, over 5000 Australians over age 50 respond to the detailed survey to have their voices heard on the major issues they face.  The survey is structured in collaboration with UNSW/Centre of Excellence for Population Aging Research.

Dr Funder said that after two years of living with the threat of COVID, and in and out of lockdown, older Australians understood more than ever the value of the family home as a safe haven and the preferred place to live during retirement.  “Home is literally our castle against COVID,” said Funder.

Other key findings of the survey included: more than 74% of retirees were concerned about being forced to sell their home to fund retirement; more than 74% of retirees were concerned that the home would be included as part of an assets test; and 73% said they were concerned, or very concerned, that they would be forced to use the Centrelink Home Equity Access Scheme.

“It’s critical that we improve the awareness of the family home as the best place to live and the right way to help fund retirement,” said Dr Funder, noting that rising house prices, the main store of wealth and bequest for Australian families, have appreciated around 20%.

“That means the value of home equity saved in the family home is now worth three-to-four times a household’s superannuation savings,” said Dr Funder, adding the survey also revealed that 70% of retirees believe their investment returns will be inadequate and have a negative impact on their lives.

“We know government welfare alone cannot meet the retirement funding needs of the nation.  Accessing private property in home equity must remain a voluntary, self-funded option available to retirees, not a tax and certainly not at the expense of existing entitlements,” said Dr Funder. 

Urgent need for improved retirement incomes

Irrespective of current income levels, 80% of older Australians stated their ideal retirement income would be $1,000 to $2,000 per month more than their current income. For some, their retirement income is barely covering necessities, particularly for those reliant on the Age Pension.

Some of the statements posted by retirees in the survey express the urgent need to improve national retirement funding:

“Retirement in Australia is appalling. You have to survive on a minimal amount of money, living below poverty line.”

“I’ve adjusted to living in a frugal way, buy most items at op shops and buy groceries from the clearance aisle or when they are half price.”

Self-funded retirees are also finding it challenging to make ends meet. Persistent low interest rates and rising costs are impacting across the socio-economic spectrum.

“As a self-funded retiree, the low investment rates are of huge concern and continue to have an impact on our retirement plans.”

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Josh Funder

Household Capital Three Pillars Forum Demands Holistic Retirement Funding Solutions September 16, 2021 The 2021 Household Capital Three Pillars Forum was held on September 16 and attended by hundreds of industry leaders and stakeholders.

Since commencing in 2019, the Household Capital Three Pillars Forum, has grown to welcome a larger number of panelists, this year including three expert panels.

Sponsored by Household Capital, the Three Pillars Forum is determinedly independent and seeks to unite all three pillars of retirement funding: superfunds, the Aged Pension and home equity. This year the Three Pillars Forum was hosted by Australian journalist and broadcaster Ali Moore.

Panel One: Australian retirees are the wealthiest in the world; but are they loving life?

Opening with a plenary address from Senator Anne Ruston, this consumer-focused panel was joined by Ben Hillier, Troy Sloan, Jeremy Duffield, Noel Whittacker and Kyra-Bae Snell and looked at the lack of retiree confidence, despite their wealth.

In her remarks, Senator Ruston, Minister for Families and Social Services, highlighted Australian paper millionaires, saying, “We want our senior Australians to enjoy the best quality of life during their retirement and one of the key factors in achieving this is financial independence. The three pillars you are discussing today, the Aged Pension, superannuation and voluntary savings are so important to this and form the basis of Australia’s retirement income system.

“To improve the welfare of our older Australians, these three pillars must work together and be fit for purpose. For many senior Australians the Aged Pension is a key source of retirement income, but with housing prices increasing significantly in recent years, we are seeing many of our senior Australians paper millionaires with limited ability to access the benefits of their appreciating assets.”

Ben Hillier, General Manager Retirement Solutions at AMP, spoke to the lack of information available to retirees saying, “I like to use the analogy that that’s like putting someone into a lifeboat, when they’re expecting to go on a retirement cruise. They’re perhaps thinking that it’s going to be the cruise of a lifetime. We whack them in a lifeboat, load them up with lots of provisions and push them off and say, “There you go, enjoy your retirement.”

“They say, “Well, how long do I need to make these provisions last?”. “Well, you figure it out!”. “How much do I consume?” Well, it’s entirely up to them. We’re putting all the risks onto the retirees. Which is just far too much to expect for people who aren’t finance professionals.”

Jeremy Duffied, Executive Chairman of SuperEd and Retirement Essentials, described his perfect solution, saying, “In a utopia I’d go for simplicity because we must have one of the most complex systems in the world from the superannuation system to the Aged Pension system, to our advice regulation. I’d be looking for every opportunity I could to simplify things but I don’t expect that utopia to develop. I would do things like pursue the retirement income covenant and try and make retirement income forecasts readily, widely available, to help people understand what that means, because it helps them address the great questions of how much can I spend and how long will it last.

“Encouraging retirement income forecasts is something that super funds and the government can do. I would push super funds to help people get into account based pensions at the right age and not to stay an accumulation too long. And I would encourage super funds to keep their members into retirement, even if they have relatively small balances.”

Panel Two: Housing and funding retirement; the economic boost of a trillion dollars of Australian retiree property

Focussed on the economy, this panel opened with an update from Professor Hazel Batemen, before the international panelists Andrew Kail, Professor Thomas Davidoff, Emma Dawson, Tim Lawless, James Hickey and Bob Officer explored the potential economic boost from releasing the $1 trillion dollar Australian retiree property portfolio.

Tim Lawless, Head of Research at CoreLogic Asia Pacific, spoke to the rapidly rising value of the Australian property market, saying, “It was only back in early April that we estimated the overall asset value of housing in Australia had broken the $8 trillion mark. And by the end of August, it had risen to $8.9 trillion. And almost without a doubt, by the end of September, we’ll have an asset class that’s worth about $9 trillion.”

Emma Dawson, Executive Director of Per Capita, said, “For a lot of Australians, in fact, the vast majority of working Australians, the family home is where their wealth is stored. And as we age, the capital gain that people have made on that property over the last 20 to 30 years is of no use to them if it’s not improving their standard of living. And it’s about enjoying those years of your retirement, where you’re still healthy and well enough to enjoy life spending a little bit more money then, so that you are reaping the benefits of having made that capital gain.”

James Hickey, Partner at Deloitte, said, “It’s not just the Aged Pension and superannuation. It’s also now including other forms of wealth, including housing wealth in considerations for people, when they look at their retirement. I think that we should give the incentive to financial planners to actually see it as an obligation upon themselves to understand the role of the family home, and the repository of wealth that that could present. Under the Retirement Income Covenant, it may well require superannuation trustees to have an understanding of the value of the home, of the member and what role that could also play in a retirement income strategy. So, there is a ground swell of momentum happening, and the encouraging thing is that equity release is being considered in a lot of those discussions.”

Panel Three: Longevity, a blessing or a curse?

Uniting the industry to fund an ageing population. The final panel united experts from every element of aged care funding including superannuation, the Aged Pension, home equity including the Pension Loan Scheme, and the latest in technology delivery. Dr Deborah Ralston both gave the introductory address and joined the panel along with Steven Reilly, John Maroney, George Haramis, Dr Joshua Funder.

Dr Deborah Ralston, Co-Author of the Retirement Income Review, said, “One of the things that we really want people to do is to enter retirement feeling confident and happy, about the fact that they are able to live a good quality of life, and that they can use their resources. Too often, people are afraid to spend their savings because they’re concerned that they’ll run out of money or there’ll be huge costs involved. And if we structure our products right, we can give people confidence to know that they’re not going to run out of money and that they’ll be able to afford the comfortable retirement that they saved for.”

Dr Joshua Funder, CEO of Household Capital, spoke to the positives saying, “We’ve got a real opportunity because we’ve got good healthcare and longevity, challenge and a benefit. We’ve got a good pension that’s sustainable, means tested, higher for those who get it than off shore when everybody gets a flat pension. Got good housing, residential property, and we’ve got a good superannuation system, but it’s not there yet for baby boomers. We’ve got great home equity that we can add and it’s already been declared in a world-leading way as the third pillar. So, funnily enough, Australia’s got the chance to meet the challenge of an ageing population with the existing componentry and the wealth that we’ve already saved.”

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