CASE STUDY: How a reverse mortgage can supplement your retirement income

Sheila and Bruce, both 70, love the life they have. The couple own a home on the mid north coast of NSW where they have lived for the last twelve years and want to see out their retirement years in the home and community that they have come to love. Their challenge is that in recent years they have had to gradually limit their spending, which has gotten in the way of the carefree retirement they have worked so hard for.

Happy retired couple
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Bruce was self-employed for the better part of his career, and with Sheila taking time out of the workforce to raise a family, they retired with only a modest amount of superannuation. When he sold the business, Bruce put the proceeds into some well thought out investments but given the current volatility of the investment markets, the couple feel that now isn’t quite the right time to liquidate any significant portion of these. Instead, Sheila and Bruce need an alternative solution to allow them to fully enjoy their retirement with both financial freedom and peace of mind.

How Inviva helped

After discussing their situation with a financial adviser, Bruce and Sheila decided that Inviva’s Equity Empower reverse mortgage might be the right solution to improve their retirement funding in the short to medium term. With an Equity Empower loan, Sheila and Bruce have been able to use the equity in their home to establish a regular income stream of $1,500 per month over 7 years to bolster their retirement finances. Together with their investment income, the regular income stream has allowed them to comfortably make the most of their retirement years and feel secure in the knowledge they have the income to enjoy their retirement on their own terms. They plan to repay the loan by liquidating some of their investments when it makes more sense to do so.

“We were worried that we might have to sacrifice parts of our lifestyle, but this loan has given us the confidence that we will be able to see out our retirement without compromise.” - Sheila

You can find out more about how a reverse mortgage can help supplement your retirement income here.  

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