Independent retirement funding provider Household Capital has acquired Government home equity scheme specialist Pension Boost.
This would enable it to provide both Home Equity Access Scheme (HEAS) and Household Loan products to older Australians and help retirement funding providers like superannuation funds.
“The acquisition expands Household Capital’s proposition, widens its market reach and is consistent with our strategy to be the most trusted provider in the Australian home equity release market,” said Household Capital chief executive, Dr Joshua Funder.
Since launching in 2019, Pension Boost had originated around 30% of HEAS applicants, helping to simplify the process and undertake the necessary follow-up with relevant government agencies, like Centrelink.
Pension Boost founder, Paul Rogan, would join Household Capital’s advisory board as a part of the acquisition to share his knowledge and expertise in the sector.
“It’s clear we both share the same ambition to cement home equity access as the third pillar of retirement funding. Bringing the two businesses together establishes the leading platform for retirees looking to improve their retirement funding. The combined platform also enables superfunds and financial advisers to support their retiree members or clients,” Rogan said.
Dr Funder added, “2023 will be the biggest ever year in Australian home equity retirement funding, forecast at over $750 million – this is an inflection point in home equity as the third pillar of retirement housing and funding.”
With this acquisition, Household Capital would be positioned to be the largest provider of home equity retirement funding in Australia in the coming year.
