Self-Funded Retirees

The Global Financial Crisis reached Australia in late 2008 and the downturn in the equities market has seen many a Senior lose a large portion of their retirement income. Not only has the asset value reduced but dividends are now showing the effects of lower profits and companies reducing their debt levels. Additionally, those retirees with cash assets have seen interest rates fall from 8% to the low 4’s.

 

Partially Self-Funded Retirees

With the value of assets having fallen significantly, many Seniors are now able to receive an additional amount from Centrelink after applying for a new assessment.

 

Fully Self-Funded Retirees

Seniors whose assets and/or income were previously assessed as outside the guidelines may now qualify for a part pension and, more importantly, a Health Concession Card.

 

Rebuild your income with a Reverse Mortgage

There will be a time when equities regain their previous strengths and income returns to former levels. Until then, Seniors who wish to maintain their lifestyle must find an alternative, and nobody wants to sell shares in the current environment. For the self-funded retiree, enter the reverse mortgage.

 

A reverse mortgage can provide a regular monthly payment to meet that income shortfall, and can be turned off/on as required. And when better conditions return, the reverse mortgage loan can be repaid from the increased asset value. And a reverse mortgage regular payment is not regarded by Centrelink nor the Australian Taxation Office as income.


Below are links to articles of interest to
self funded retires! 

Draw-down relief to boost reverse mortgages
By Julie May
Friday 20 February 2009