Household Capital chief executive Josh Funder said it has been a challenging time for advisers dealing with retiree clients.

“Many clients have faced a sudden loss of retirement income due to falling dividends, term deposit rates and rental income. At the same time, shrinking super balances run the risk of failing to recover in the future if drawn on too heavily,” he said.

Mr Funder said advisers didn’t want their clients to draw money from super in this environment, although for some, there seems little alternative.

“We know self-funded retirees are doing it tough and facing reduced incomes due to shrinking super balances and investments,” he said.

“The government stimulus package focused on working Australians, and while the banks have provided interest repayment holidays, none of that has helped retired Australians get through the crisis.” 

Home Income will provide funds typically available within two weeks, he said, and regular interest repayments are not required.  

“We don’t want people to have to wait — they need that money now,” he said. 

“Smaller loans like these are not profitable to originate in a business sense, but we view it as a service to make sure Australian retirees have access to their savings when they really need them.” 

Home equity, he said, can be an important source of retirement funding for clients when other types of income are diminished. It’s a practical option when you consider many Australian retirees have as much or more saved in their family homes as in their super or other investments. 

“We have experienced a surge in inquiries from advisers in the last couple of months; self-funded retiree clients need an alternative source of income,” he noted. 

“For retired Australians, their homes can be both the best place to live and the best way to fund their retirement.”