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The independent retirement fund provider has announced the acquisition of Pension Boost, broadening its offerings to Australian retirees.
Household Capital chief executive, Dr Joshua Funder, said the acquisition of Pension Boost will allow the provider to deliver “trusted one-stop-shop” services to Australian retirees in regard to accessing home equity to meet retirement funding needs.
Pension Boost educates consumers on the federal government’s Home Equity Access Scheme (HEAS) to ease them through the application process and executes follow-ups with government agencies.
The home equity access start-up has originated approximately 30 per cent of HEAS applicants since its launch in 2019.
Dr Funder added that the acquisition “expands Household Capital’s proposition” and widens its market reach, while being consistent with its “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,” Dr Funder said.
“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.”
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According to Dr Funder, 2023 will be the “biggest year ever in Australian home equity retirement funding”, forecasted at over $750 million.
The government’s HEAS scheme is currently showing similar growth rates to Australia’s home equity market, sitting at around 40 per cent per year and expected to become more prevalent in the home equity market over time.
Commenting on the acquisition, Pension Boost founder, Paul Rogan, stated: “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 superfunds and financial advisers to support their retiree members or clients.”
Mr Rogan is set to join the Household Capital advisory board to “share his expertise and experience” with the Household Capital team.
Chair of Household Capital, Nick Sherry, said the acquisition extends the provider's capability and will complement its “mission to deliver scaled access to home equity”.
“We believe our proposition, together with superannuation and the Age Pension, provides the full package for retirees,” Mr Sherry said.
Older Aussies encouraged to downsize homes
In order to free up housing stock for younger families, older Australians will be urged to downsize their homes after the bill to reduce the eligibility age for downsizer contributions to age 55 passes.
The Treasury Laws Amendment (2022 Measures No. 2) Bill 2022 lowers the age that individuals can make downsizer contributions to their superannuation from the proceeds of selling their house from the age of 60 down to age 55.
Eligible applicants can make a contribution of up to $300,000 to their super from the proceeds of the sale or partial sale of their home without it counting towards contribution caps.
[RELATED: Downsizer age passes Parliament]
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