Single retired women make more use of the government’s reverse mortgage scheme than their male counterparts. More women are boosting to their income in retirement this way in the face of lower superannuation balances compared to men.
Pension Boost, who are specialists in the government’s Pension Loans Scheme (PLS), reviewed the PLS applications it has submitted on behalf of its clients since the PLS was expanded in July 2019.
Females dominate single PLS applicants with 59% share of single loans approved by number and 63% by value. 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. We also see a slightly higher degree of conservatism amongst single females with 8% preferring a part PLS payments rather than the maximum, whereas only 3% of single males select a part payment. This appears to add further to the weight of evidence of the gender gap when it comes to retirement funding including super.
Pension Boost’s Paul Rogan noted the high levels of female interest in PLS.
“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 |
PLS is a government-backed reverse mortgage scheme for property-owning retirees that does not adversely impact their Age Pension eligibility. The PLS pays up to 150% of the full age pension rate less whatever pension is received on a fortnightly basis. For a single full age pensioner they can currently access up to $476 per fortnight, or $12,385 yearly.
More information on the Pension Loans Scheme, PLS calculator and how Pension Boost can assist a loan application is available here: pensionboost.com.au
Paul Rogan
Founder and CEO
Pension Boost
Sydney
M: (+61) 0423 780 113
paul@pensionboost.com.au
https://pensionboost.com.au