RMIT expert available for comment on the federal government call for more widespread use of equity release products

RMIT expert available for comment on the federal government call for more widespread use of equity release products

An expert from RMIT University is available to talk about the Prime Minister and Assistant Minister for Superannuation’s recent comments on self-funded retirees accessing equity in their homes.

Associate Professor Stuart Thomas (0409 372 287 or stuart.thomas@rmit.edu.au)
Topics: retirement savings gap, equity release, ageing in place

“Despite Australia’s high rate of home ownership, for many superannuation and the age pension will not be enough to support them comfortably, especially in late retirement.

“If the government is genuine about making equity release a more prominent method of retirement funding, and addressing this gap, it needs to address low financial literacy in this area.

“In our report on reverse mortgages released today, we found most Australians don’t understand what equity release is, or the benefits of using products like reverse mortgages and home reversion to fund their retirement.

“Currently, equity release products - and reverse mortgages in particular – are often being used to pay out current debt, ahead of other uses such as home improvements to allow them to stay in the home longer, or for income support during their retirement.

“Australia also lacks a deep and diverse equity release market, with disjointed regulation between states and the federal government among several barriers to entry for innovative new products.

“This needs to change if equity release is to play a more prominent role in funding retirement in Australia.”

The full report Reverse mortgages: Financing ageing in place, is now available.

Dr Stuart Thomas is an Associate Professor in the School of Economics, Finance and Marketing at RMIT. Prior to his academic career he worked in a “Big 5” accounting and business advisory firm and before that in the IT industry. He has a diverse portfolio of research interests including innovation in the finance sector and private retirement funding through alternatives to superannuation. 

 

***

For media enquiries, please contact RMIT Communications: 0439 704 077 or news@rmit.edu.au

 

20 November 2020

Share

20 November 2020

Share

  • Society
Engage

Related News

ShanishaHarrisShalarnaThorpe.jpeg

Internet use grows in remote First Nations communities, but cost still a barrier

A new report shows internet access in Australia’s remote and very remote communities improved in the past two years as 4G, Wi-Fi and satellite infrastructure is bolstered across regional Australia.

Large group of researchers in orange hi-vis vests and hard hats, posing in front of wood-panelled building.

RMIT researchers help build climate-resilient housing in rural Bangladesh

Researchers from RMIT have partnered with the Palli Karma Sahayak Foundation (PKSF) in Bangladesh to build 40 sustainable and resilient housing solutions for vulnerable rural communities.

Rendering of PIVOT hospital chair.

RMIT success at Victorian Premier’s Design Awards

An innovative bi-directional hospital transfer chair that facilitates seamless attendant-facing transfers has won a Victorian Premier Design Award alongside recognition for a more than dozen RMIT-affiliated projects.

New partnership with Cisco and Grampians Health to upskill healthcare sector

RMIT’s Health Transformation Lab and College of Vocational Education are piloting a program to rapidly upskill front-line staff, broader health workforce and IT professionals in the healthcare sector to meet the industry’s emerging skills needs.

Show more
aboriginal flag
torres strait flag

Acknowledgement of Country

RMIT University acknowledges the people of the Woi wurrung and Boon wurrung language groups of the eastern Kulin Nation on whose unceded lands we conduct the business of the University. RMIT University respectfully acknowledges their Ancestors and Elders, past and present. RMIT also acknowledges the Traditional Custodians and their Ancestors of the lands and waters across Australia where we conduct our business - Artwork 'Sentient' by Hollie Johnson, Gunaikurnai and Monero Ngarigo.

More information