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Are increasing costs putting a strain on your budget?

Heartland Bank Reverse Mortgage News

We are pleased to have helped more than 18,000 Kiwis live a more comfortable retirement with a Heartland Reverse Mortgage.

Some of our existing and new customers have told us how challenging it is to live a comfortable retirement on NZ Super alone. This is despite many people having considerable equity in their home.

New Zealand Super is not enough

As at June 2020, a retiree living alone receives $847.66 fortnightly (after tax), while a couple receives $652.04 each.

According to the New Zealand Retirement Expenditure Guidelines, a couple wanting to live a ‘no frills’ lifestyle in a major city would need $898.73 per week. This results in a shortfall of almost $250 a week.

For a couple wanting to live more comfortably with some luxuries, they would need $1,436.00 a week. Funding this lifestyle is not possible on NZ Super alone.

Costs are increasing

Council rates are expected to increase by over 5% per annum in many areas, while insurance costs are forecast to rise 3-5% per annum.

In addition to increasing costs, interest rates are at all-time lows. Many retirees who have relied on the interest on their savings may need to cut back on spending or dip into their hard-earned savings.

But there is a solution

A Heartland Reverse Mortgage with a regular advance feature can help take the stress out of everyday bills.

A regular advance provides a monthly payment to complement your retirement income, and you can access it for between five to ten years. This can provide you with the peace of mind to enjoy your retirement and splash out on those little luxuries.

To find out more about a Heartland Reverse Mortgage or our regular advance feature, please get in touch with our customer care team on 0800 488 740 or [email protected] to discuss your options. We are here to help.

 

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