Photo: 123RF
A new home equity release product is promising a debt free, income solution for the over 70s - so what are the fish hooks?
Lifetime Home is owned and operated by retirement income specialists, Lifetime Retirement Income.
Under the equity release scheme, a homeowner who is over 70 years of age, can sell a slice of equity in their home to Lifetime Home, in return for a regular income over ten or more years, paid on the same day as NZ Super.
The homeowner retains majority ownership and the right to live in the home as long as they wish.
When the homeowner or their estate eventually sells the home, Lifetime Home receives its share of the sale proceeds.
Lifetime's founder and managing director Ralph Stewart says this is a new retirement income option which will help some retirees tap into their biggest asset to bolster their income in retirement, without taking on debt.
Kathryn also speaks with the Retirement Commission's Personal Finance Lead - Tom Hartmann.
