Hana Financial rolls out housing pensions products for older adults

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Hana Financial Group has launched a new housing pension product that allows owners of multiple high-value properties to qualify for enrollment, the lender announced Tuesday.

Otherwise known as a reverse mortgage, this financial product allows homeowners to borrow against their home’s equity and receive monthly lifetime payouts. It helps older adults supplement their reduced income after retirement, but it results in a smaller inheritance for their children.

The product was developed jointly by Hana Bank and Hana Life. It is available to people aged 55 and older.

It is a nonrecourse product, meaning the heirs do not inherit debt even if the subscribers die and their home sells for lower than the loan balance.

The lender bears the difference between the original price and the market price.

If the home sells for higher than the loan balance, the heirs are able to inherit the difference.

Hana said the product will be available at a fixed rate of 3.95 percent for long-term security.

The lender said the product will offer many older customers better postretirement planning.

“Korea’s second baby boomer generation is expected to live longer. Our product will hopefully be a reliable source of monthly income,” the lender said. Korea's second baby boomer generation refers to people born between 1964 and 1974.

“Hana hopes to support postretirement life, aided by senior-focused products.”

Last October, the group launched HANA THE NEXT, an older adult-focused brand introducing specialized services for retirees.

The brand embodies its respect for the experiences of older adults and its support for their future.

The group provides comprehensive services encompassing retirement planning, inheritance, health management and more.