Pension Boost, who are specialists in the government’s Pension Loans Scheme (PLS), has reviewed the PLS applications it has submitted on behalf of its clients since the PLS was expanded in July 2019.
Single females dominate single (PLS) applicants with 59% share of single loans approved by number and 63% by value. PLS is a government-backed reverse mortgage scheme for home-owning retirees that does not affect Age Pension rules. The PLS pays up to 150% of the full age pension rate less whatever pension is received on a fortnightly basis. For example, the maximum a single full age pensioner can access is currently $476.
Single females, however, have a 7% lower initial maximum loan amount – meaning the duration of their access to PLS payments is lower than single males. This appears to add further to the weight of evidence of the gender gap when it comes to retirement funding including super.
Paul Rogan at Pension Boost is pleased to see this level of female interest in the scheme. He noted: “At 72, females still need on average to fund another 15-16 years of life expectancy and males 13-14 years. It’s interesting that our research shows the median age of single females applying is consistent with males at 72.5 years vs 72.1 years.”
Initial PLS maximum loan amounts approved | |
---|---|
Single Women | $106,700 |
Single Men | $115,150 |
All Singles | $108,300 |
Couples | $128,000 |
Source: Pension Boost |
The majority (99%) of Pension Boost’s PLS applications on behalf for retirees are approved.
More information on the Pension Loans Scheme, PLS calculator and how Pension Boost can assist a loan application is available on the Pension Boost website.