Enrollment available even for homes valued over 1.2 billion KRW or for owners of multiple properties
Applicants and spouses aged 55 or older are eligible
Lifetime monthly pension paid until both spouses pass away
Hana Financial Group announced on May 26 that it has launched "Hana The Next My Home Pension (Reverse Mortgage)," a product that allows customers to live in their own homes for life while receiving a fixed monthly pension for life.
Available at Hana Bank branches nationwide starting today, "Hana The Next My Home Pension" is a private home pension product jointly developed by Hana Bank and Hana Life to address two major concerns of the senior generation: the post-retirement income gap and housing stability. The product was recognized for its innovation and potential to create social value and was designated as an innovative financial service by the Financial Services Commission in December last year, receiving final approval.
Anyone aged 55 or older, including both the applicant and their spouse, is eligible to enroll. Customers entrust their home to Hana Bank in the form of a trust, allowing them to continue living securely in the property. Hana Life then pays a fixed monthly pension for life, not only to the applicant but also to their spouse until both have passed away.
Attracting attention as a differentiated solution that addresses the blind spots of existing senior finance, "Hana The Next My Home Pension" is available for homes with an officially announced value exceeding 1.2 billion KRW. Applicants must have owned the eligible property in their own name or jointly with their spouse for at least two years and currently reside in it. Enrollment is also possible even if the applicant owns more than one property.
As a lifetime annuity in the form of a trust, the rights to the home and the pension are automatically transferred to the spouse upon the death of the original applicant. This allows the spouse to continue living in the home and receive the same pension amount for life, which is a key advantage.
Additionally, "Hana The Next My Home Pension" distinguishes itself by offering a non-recourse structure, meaning that even if the total pension payments exceed the value of the home, the lifetime pension is still paid, and liability is limited solely to the trust property. Therefore, after both spouses pass away and the home is sold, heirs are not required to cover any shortfall, and any remaining proceeds from the sale are inherited by the heirs, allowing customers to use the product with peace of mind.
The product also offers various payment options to meet the diverse needs of pension recipients. These include: a "fixed type" that pays the same amount every month; an "initially-increased type" that provides higher payments in the early period; and a "periodically-increasing type" where the payment amount increases over time.
A fixed interest rate, designed for mid- to long-term stability in retirement, is applied. As of May, the applicable rate is 3.95%, calculated by adding 1.3 percentage points to the previous month's average yield of 10-year government bonds. For consultations, customers can visit a nearby Hana Bank branch or contact the dedicated channel for detailed guidance.
A Hana Financial Group representative stated, "In the face of rapidly changing demographics, such as the retirement of the second baby boomer generation and increasing life expectancy, we have prepared 'Hana The Next My Home Pension' as a reliable answer for senior customers to prepare for the future." The representative added, "Going forward, the group will continue to support the vibrant and confident second act of senior customers' lives by developing a variety of products and channels based on the senior-focused brand 'Hana The Next.'"
Meanwhile, in October last year, Hana Financial Group launched the senior-focused brand "Hana The Next" to support the second act of the senior generation's lives. Through this, the group provides differentiated life care services across the senior life cycle, covering both financial and non-financial areas such as retirement planning, inheritance and gifting, and health management.
Last year, Hana Bank launched the banking industry's first "Life Insurance Claim Trust," Hana Asset Management introduced "Hana The Next TDF," a lifecycle-customized investment product, and Hana Insurance unveiled "Hana The Next Dementia Care Insurance," designed to help prevent and detect dementia early. The group continues to strengthen its lineup of specialized services and financial products for seniors.
In addition, Hana Bank operates "Hana The Next Lounge," a specialized service channel for seniors, at major locations such as Euljiro, Seolleung Station, and Seocho-dong, and plans to open an additional location in Yeongdeungpo this year. "Hana The Next Lounge" offers free access to anyone regardless of transaction history, providing 1:1 customized financial solutions such as retirement readiness checks, retirement asset planning, and intergenerational asset transfer preparation, as well as non-financial solutions through senior-focused seminars on digital trends, hobbies and leisure, and employment.
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