Planning for your future needs in retirement
There’s no two ways about it. The Australian population is ageing. With a projection of greater demand set to continue for government programs that support older Australians, particularly aged care, our existing systems may not be able to accommodate to the needs of current and future generations.
The Australian aged care system has undergone several reforms in recent years, including an expansion of home-based care to meet the preferences of older Australians. So what is next?
Many older people wish to remain in their homes and be supported in their community for as long as they are able, however, it has been shown that the demand for aged care increases after aged 70-74, and the proportion of those accessing aged care over 80 increases significantly. This means that you should be considering both your current and future needs when entering retirement, and that includes considering these needs when applying for a reverse mortgage.
Through our application process, Heartland places huge importance on considering future needs. This includes not only aged care costs, but ongoing living expenses, medical expenses, and any plans to leave any of the estate to a beneficiary. A big factor in these considerations is longevity risk – the risk of outliving financial resources. We provide loan projections to all of our customers using ASIC’s Money Smart Reverse Mortgage Calculator, which demonstrate the value of your loan over time and potential of equity remaining, to assist you in planning for your future needs.
Here’s how you can use a Heartland Reverse Mortgage to assist with future needs:
- You could set aside funds in a cash reserve facility (like a ‘line of credit’), for unexpected expenses such as a large medical bill or car repair.
- With ageing in place the preferred option for many retirees, you could also use your reverse mortgage to fund home improvements, to ensure your home is fit for retirement.
- Heartland’s Aged Care Option can help offset some of the high upfront costs associated with residential aged care.
- Heartland’s regular advances can also be used for ongoing in-home care costs, giving extra flexibility and independence in a familiar environment.
Heartland is here to help you to live a more comfortable retirement, if you would like to find out more about using a reverse mortgage to fund your future needs, please get in touch.
Information is accurate as of 12 November 2020 and may change from time to time.
Information sourced from:
- AUSTRALIA’S AGEING POPULATION. Understanding the fiscal impacts over the next decade. Report No 02/19