Hana Financial's private home pension tops W330b in first year

Hana Financial Group's private home pension product has enrolled more than 260 customers and accumulated 330 billion won ($224 million) in total subscriptions within its first year on the market.

Hana Financial Group announced the milestone Wednesday at a customer appreciation event held at its Myeong-dong headquarters in Jung-gu, Seoul, to mark the first anniversary of the product. The average age of subscribers was 76, and the oldest enrolled customer was 92.

About 50 customers attended the event alongside Chairman Ham Young-joo and other Hana Financial Group executives. Ham said the group had long focused on "a problem no one had been able to solve" and expressed gratitude to customers who "entrusted us with their precious retirement assets." He added that the group would "do its utmost to be a financial partner that stands by customers through a secure retirement and a happy future."

The product, launched in May last year, is a private home pension that combines Hana Bank's collateral trust with Hana Life Insurance's lifetime annuity in a group-wide collaborative model. A key feature is its non-recourse structure, which guarantees lifetime pension payments even if the total amount received exceeds the value of the home. Eligibility requires that the younger of the applicant or spouse be at least 55 years old and that the applicant live in a home they have owned for at least two years.

The home pension market has long been dominated by public-sector products, which in effect excluded homeowners whose properties were assessed at more than 1.2 billion won. Hana Financial developed the private product to fill that gap, allowing retirees to remain in their existing homes while receiving a lifetime pension.

Since its launch, the product has spread largely through word of mouth, with customers drawn to the prospect of stable cash flow. Use cases have varied — some subscribers have tapped the product to cover living expenses while staying in their homes, while others have used the trust structure to address inheritance planning.

Hana Financial revised the product in April, expanding eligibility to homes undergoing reconstruction or redevelopment and introducing tiered pension payout limits — 500 million won, 700 million won, 1 billion won, 1.3 billion won and 1.5 billion won — to allow more tailored financial planning. Hana Financial said it would "firmly establish itself as an innovative product leading the home pension market, having proven its unrivaled product quality."