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Reverse Mortgage Can Be A Retirement Solution For You

Reverse Mortgage Can Be A Retirement Solution For You

While Australians have the superannuation arrangement with the government, which is supported and encouraged, it may not be enough. Employers must pay into the pension fund, which is 9.5 percent as of 2014, so whatever you make, that percentage is placed into the fund. While you can put aside more funds and are encouraged to do so, most people hitting retirement age find that the superannuation isn’t enough though a reverse mortgage can also help.

Superannuation Benefits Explained

There are three categories of the super, including unrestricted, restricted and preserved benefits. The preserved benefits will stay in your fund until you reach the preservation age, and you must be at least 55 years old before you can use these resources though it will be based on your date of birth. Restricted benefits aren’t preserved though you cannot access them until you meet some condition of release from your employer. Unrestricted benefits can be obtained whenever you request them though there are a few conditions.

Self-Employment

Many people reaching retirement age, however, were self-employed for all or part of their working life and therefore may not have had a superannuation fund or system available to build up an amount they can use when they retire. There could be many reasons for self-employment, such as having your own business, purchasing property to rent or sell later, or some other reason. Therefore, you may be worried about your retirement funds and feel that there is no solution that can help though a reverse mortgage could be the answer.

Mortgage/Other Debt

If you currently have a mortgage and other debt, the superannuation fund is meant to help you pay off those debts and still live a comfortable life, but many may need more. Reverse mortgages allow you to get money from the mortgage, which you are not required to pay back. You can live in your home until you pass on and cannot be kicked out. That money can be used to pay off other debts or be used to live, such as paying bills or buying groceries.

Questions That Should Be Considered

Typically, your company should ask questions, such as whether or not the existing debt can be paid or if other options could be used to meet your needs. They will also find out whether the equity in your home is enough to care for you and your beneficiaries, to ensure if this is a viable solution.

If you are facing retirement and will need more money, a reverse mortgage can be part of your solution. Visit Reverse Mortgage Finance Solutions today to learn how they can help or to contact them.

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