Since 2019, Pension Boost has been assisting retirees access the government backed Pension Loans Scheme – a form of reverse mortgage. Pension Boost has now assisted seniors access more than $50 million in PLS loans to help them live a better life.
The Pension Loans Scheme (PLS) pays a fortnightly amount to property-owning retirees with a lump sum option to be introduced from July 2022.
“Whilst demand for PLS has predominantly come from pensioners approximately 10% is from self-funded retirees who are now eligible. We are also finding that enquiries are often being initiated by the children of retirees who see their parents are struggling to make ends meet but don’t wish to deal with the cost and emotional stress of downsizing or lose their independence.
“Pension Boost’s discussions with advice dealer groups is highlighting increasing interest in embracing this opportunity for their senior ‘asset rich but cashflow poor’ clients to access more cashflow and not have their Age Pensions adversely impacted.
“We also believe advisers will start educating clients on the PLS opportunity off the back of the 2021 Federal Budget announcements of enhancements to the PLS which are expected to drive greater uptake,” said Paul Rogan, Pension Boost founder.
Excerpt from Pension Boost’s 2021 Federal Budget overview
Federal Budget and seniors: PLS changes are welcomed
Major enhancements that Pension Boost has been advocating for will be made to the Pension Loans Scheme (PLS) from 1 July 2022:
- A No Negative Equity Guarantee will apply to PLS loans.
This has been one of the major advocacy reforms Pension Boost has been pushing and so we are very delighted to see that this important protection for seniors will be introduced to level the playing field for all reverse mortgage solutions - Lump-sum option to be introduced
Singles will be able to access up to $12,385 and couples up to $18,670 via up to two advances in any 12-month period. (Note: this represents 50% of the annual rate of the full Age pension.) This is more great news as Pension Boost has been advocating for this as it will help many seniors meet certain larger expenses like repaying credit cards, undertaking home repairs, or replacing an ageing car - Investment in raising awareness through improved public awareness and branding. This is crucial in our view as very few seniors are aware the government offers this scheme and what it offers them.
Paul Rogan
Founder and CEO
Pension Boost
Sydney
M: (+61) 0423 780 113
paul@pensionboost.com.au
https://pensionboost.com.au