Hild targeting 6,000 contributors to its annuity scheme

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Hild company, offering people aged 65 and over the possibility of ceding ownership over their homes to the company in exchange for life annuities, has announced it will attempt to draw 6,000 such customers in Romania in the years ahead.
 
Hild Romania General Manager John Wirth told daily Ziarul financiar on September 18 that Romania is the second largest country in Central and South-Eastern Europe and that is why it is a key component for the Hild business. He says that in Hungary Hild won over 3,000 people four years into business there, and that is why in Romania, which is almost double Hungary, the customer base should be double as well.
 
The offer entails the issuing of an own capital equivalent to a price for the home, so that pensioners may draw an extra income and at the same time have the comfort of their homes secured for the rest of their life, Hild explains. According to Hild, a person aged 74 could receive a down payment of some 18,000 euros and life annuities of more than 300 euros a month for a home valued at 100,000 euros.
 
„This is a cautious estimate, because, in fact, the beneficiary may receive more than 300 euros a month. The annuities varies according to the age of the beneficiary and the property value,” says Bogdan Baltazar, a member on the consultative board of Hild Romania. He also says that Hild has already met several pensioners from various pensioners’ associations, including the Association of Bucharest Pensioners.
 
Hild officials argue that the main reason for the company having chosen Romania is the fact that more than 80% of the elderly own the house they live in, while in Switzerland or Germany owner occupancy among the elderly is only 40%.
Among the stakeholders in the Hild financial solution provider is the US Merrill Lynch, with a 20% stake. The company a financial arrangement whereby it buys homes from the elderly aged 65 and above, who may continue to live in without paying rent, in exchange for an advance payment and annuities.
 
Hild buys over the homes under life annuity contracts, paying a substantial down-payment and monthly annuities adjusted for inflation. The owners continue to live in the houses they sold for the rest of their life, without paying any rent, Hild officials told the launching conference of the scheme on Tuesday.
 
Each potential customer undergoes a psychological test to see whether he or she has full control of his or her mental capacities. The contract does not entail a medical check-up, because the contract is drawn on the average life expectancy rates. Hild officials say life expectancy for a man having turned 65 is 14 years and for a woman having turned 65 is 17 years. Nevertheless, when the customers outlive the expectancies, the company will continue to pay the annuities for the rest of the customers’ life in question.
 
Hild Romania business is guided by a consultative board including former bank chairs Bogdan Baltzar and Elena Petculescu, besides Director of the Institute for Economic Forecasts Lucian Albu and Chairman of the European Foundation for Entrepreneurship Peter Zaboji.

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