90% Of Older Homeowners Want To Remain In Their Home In Retirement

Results from a 2021 survey conducted by leading reverse mortgage provider Heartland Bank revealed that 89.9% of respondents found it important or very important to remain in their homes during retirement.

The survey, conducted as part of a partnership with lifestyle website GrownUps, asked over 2,000 Kiwis aged 50+ for their thoughts on homeownership, retirement, NZ Super, reverse mortgages and more. The findings support the theory that many Kiwis and Australians are looking to ‘age in place’ rather than downsize, move to a retirement village or move in with family.

“We’ve been seeing anecdotal evidence for years that our customers are wanting to retire in the comfort of their own home,” explains Heartland’s General Manager of Reverse Mortgages, Andrew Ford. “This survey has confirmed that ageing from home is becoming a more popular option, despite the challenges that can come with it for people who have the majority of their wealth locked up in their property.”

The survey also revealed that only 12.3% of respondents feel that NZ Super on its own will be enough to fund the retirement they desire, highlighting that for many retirees, limited superannuation and the rising cost of living is restricting the ability to comfortably age in place.

Click here to download an infographic outlining the most interesting findings from the survey.

Equity release could offer a solution

International research published by EY predicts that the global equity release market could more than triple over the next decade. According to the Global Equity Release Roundtable 2020 survey report, which analyses information from market leaders across the world (including Heartland Reverse Mortgages), the growth potential of this market is huge. Over $15bn of equity is currently released per year globally, and by 2031 this is expected to surpass $50bn annually.

Heartland is seeing a significant increase in demand from people wanting to stay in their homes and live a more comfortable retirement. Reverse mortgage enquiry levels in 2021 were up 65% on those in 2020, indicating that more and more people are becoming aware of the potential benefits of a reverse mortgage.

“Higher livings costs are forcing retired homeowners to consider options to maintain their lifestyle,” explains Ford. “A Heartland Reverse Mortgage can enable them to live the retirement they desire while staying in their home.”

Responsible lending criteria, fees and charges apply.

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