RMIT expert available for comment on retirees accessing equity in their homes

RMIT expert available for comment on retirees accessing equity in their homes

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

“Successive interest rate cuts have severely eroded the incomes of many retirees. Reverse mortgages and home reversion products provide a way to boost their retirement income and the Prime Minister is now actively encouraging seniors to access the equity in their homes.

“Using home equity to supplement retirement income could be an important fourth pillar of retirement funding policy but access to the Commonwealth’s Pension Loans Scheme is restricted, the range of commercial products is limited and barriers to entry product providers are high.

“If the Commonwealth is serious about equity release as a fourth pillar of retirement policy, education for consumers and advisors, careful integration of equity release into retirement plans, and a reduction of red tape will be called for.”

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. 

 

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

 

17 October 2020

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17 October 2020

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