Seniors Money Ireland
Date: 09-01-2006
Source: IFG Group plc
Sentinel/ IFG deal paves the way for huge growth in post retirement finance following launch of Seniors Money Ireland
In New Zealand, Sentinel has captured a staggering 94% market share in less than 12 months.
Dublin, Ireland, 9th January 2006
The IFG Group and Sentinel, Australia and New Zealand’s leading senior’s finance company, have announced the launch of Seniors Money as Ireland’s newest and most flexible provider of cost effective retirement funding.
The Seniors Money 60plus Loan is modelled on the home equity release product offered by Sentinel in Australia and New Zealand. This product has enjoyed a high degree of success in both Australia and New Zealand where it proved to be the catalyst that revolutionised the post-retirement income market and where the take-up has been extremely strong.Ireland is the first of a number of European countries where Sentinel plans to launch the product and Sentinel Europe will be headquartered in Dublin.
According to Richard Coon, Global Managing Director of Sentinel, “We chose Ireland as our launch pad into Europe because we see a gap in the market for our flexible, variable rate product and because Ireland and New Zealand share incredibly similar demographics and home ownership cultures. IFG was the natural distribution partner for Sentinel because it is one of Ireland’s largest independent financial advisory networks and leaders in the independent mortgage market.”
Unlike existing products in the Irish market, which require the borrower to sell a share of their home or commit to a long-term, fixed interest contract with penalties for early repayment, the Seniors Money 60plus Loan offers enormous flexibility in how the loan can be drawn down and repaid.
In New Zealand, Sentinel’s product was met with enthusiasm from many seniors and the company has captured a staggering 94% market share in less than 12 months. Comparisons in the New Zealand and Irish markets show high levels of correlation with similar attitudes to property and inheritance. New Zealand’s market for post retirement equity release was estimated to be less than NZ$10m in 2003, but has now grown to over NZ$150m in approximately 18 months.
IFG’s strong market position and local knowledge coupled with Sentinel’s more flexible and cost-effective product should enable the Seniors Money 60plus loan achieve a significant market share here in Ireland.
Commenting on the deal, Mark Bourke, CEO of IFG Ireland said, “We at IFG were conscious that the majority of people don’t appear to be attracted to the current products available in the retirement finance market which include fixed rate products as well as the less favoured home reversionary schemes. Sentinel’s success in other markets is remarkable after having developed an almost ideal flexible solution which we believe will enable many seniors to borrow against their property assets in an efficient manner without impacting on the ownership (or capital appreciation) of that property and still retaining a significant proportion of their home’s value.” Senior’s Money believes that a significant opportunity exists to offer creative solutions to fund retirement needs. Recent government action in Ireland has focused attention on what is commonly referred to as the “pension gap” and a series of initiatives are being examined which range from providing care programmes for the elderly in their own home through to the government providing a facility to mortgage ones property to the state. Stephen Gunning, Sentinel’s European CEO, said, “We estimate that the post retirement income market in Ireland is less than €50m at present, but predict that with more flexible solutions such as the Seniors Money 60plus Loan, it will grow exponentially to €150m within 12 months and to over €1b within 10 years” The concept Experience from Australia and New Zealand indicates that most people over 60 feel that they generally have enough for day-to-day living but have no cushion for unexpected expenses or, indeed, lifestyle enhancement. In the meantime they do actually possess something very valuable – i.e. the value tied up in their house. The Seniors Money 60plus Loan solves this dilemma by enabling people over 60 to release some of this value whilst still retaining full ownership and the bulk of the property value for the future. This form of retirement finance represents one of the few real choices available to those over 60, as it enables people to retain total ownership and still leave some money for the future. Lifetime savings come in many different formats; Pension funds, Shares, Cash and Property. While your house is also where you live, it is now possible to withdraw some of its value without significantly impacting on your children’s inheritance and still retaining sole ownership. For further information please contact: Gerry Newe Ireland is the first of a number of European countries where Sentinel plans to launch the product and Sentinel Europe will be headquartered in Dublin.
Seniors Money
1890 73 64 67
www.seniorsmoney.ie
Registered in the Republic of Ireland No. 21010
Registered Office: IFG House, Booterstown Hall, Booterstown, Co. Dublin
Tel: + 353 (0)1 2752800 | Fax: + 353 (0)1 2752801
Email: group@ifg.ie