Australia’s retirees don’t need to watch the news to know the cost of living is rising – and for many products and services, well above the headline inflation rate. The evidence is there every time you walk down a supermarket aisle or open yet another bill. 

When your income is fixed at a rate to make it last across many years of retirement, something has to give. And for many people, the first things to go are those they enjoy most. 

For others, more critical things may fall by the wayside – heating in winter, nourishing food, and critical repairs to the home or car.

If you’re worried that your retirement income won’t stretch to cover the rising cost of living, there are ways to boost it. Strong growth in home prices has seen the value of retirees’ home equity skyrocket in recent years. In total, older Australians have more than $1 trillion saved in home equity. 

You can draw on a portion of your home equity to receive a monthly or fortnightly income stream. That way, you can live the retirement lifestyle you deserve, without having to be concerned about every dollar you spend.

Home equity can also be drawn as a lump sum (or a mix of capital and income). Access to capital is important and, by using your home equity, you don’t need to draw on your income producing assets.

Household Capital provides a Household Loan, which can improve your retirement lifestyle by enhancing retirement income, providing access to capital and improving retirement housing. Importantly, Household Capital provides you with choice and flexibility to use your home equity in a variety of ways that suit you. These include:

• Providing a regular income stream through a regular drawdown facility
• Paying off an existing mortgage or other debt to free up your cashflow
• Undertaking home modifications, renovations or repairs to make your home safe and comfortable for retirement
• Setting up a contingency fund for those unexpected expenses, which can be drawn on as you need it
• Paying medical expenses
• Paying for in-home or residential aged care.

Despite the rising cost of living, you can live well at home in retirement – and it’s Household Capital’s mission to facilitate that. After all, your home can be the best place to live and the right way to fund your retirement.

To learn more about using your home equity to transform your retirement, you can:

• Speak to a Household Capital retirement specialist by calling 1300 699 624
• Read this free Home Equity e-guide.

Applications for credit are subject to eligibility and lending criteria. Fees and charges are payable, and terms and conditions apply (available upon request). Household Capital Pty Limited is a credit representative (512757) of Mortgage Direct Pty Limited ACN 075 721 434, Australian Credit Licence 391876.