Retirement funding specialist firm Household Capital has purchased home equity scheme experts Pension Boost which the former stated will create a ‘one-stop-shop’ for retirees seeking access to their home equity to meet retirement funding needs.
Household Capital chief executive Dr Joshua Funder said the acquisition would expand the firm’s proposition, widen its market reach and was part of a strategy to be ‘the most trusted provider in the Australian home equity release market’.
“The combined business will position us to be the leading provider of home equity retirement funding. Together we play a critical role in meeting the needs of an ageing population, particularly as many Australian retirees have inadequate super saved to meet their needs.
The acquisition brings together two firms which specialise in using equity within a home to fund retirement, with Household Capital providing funds directly to retirees while Pension Boost helps retirees access funds via the government’s Home Equity Access Scheme (HEAS) and since 2019 has originated around 30 percent of HEAS applicants.
Pension Boost founder Paul Rogan will join the Household Capital Advisory Board and said, “It’s clear we both share the same ambition to cement home equity access as the third pillar of retirement funding”.
“Bringing the two businesses together establishes the leading platform for retirees looking to improve their retirement funding. The combined platform also enables superannuation funds and financial advisers to support their retiree members or clients”.
Funder said the HEAS was growing a similar rates to home equity access market, at around 40 per cent per annum, and is expected to become an important part of the
home equity market in the future.
“2023 will be the biggest ever year in Australian home equity retirement funding, forecast at over $750 million – this is an inflection point in home equity as the third pillar of retirement housing and funding,” Funder said.
