Media Release | 2nd July 2021Pension Boost drives $50 million in Pension Loans Scheme approvals

Since 2019, Pension Boost has been assisting retirees access the government backed Pension Loans Scheme (PLS) – 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 PLS pays a fortnightly amount to property-owning retirees, with a lump sum option to be introduced from July 2022.

Paul Rogan, Pension Boost Founder commented, "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 want them to have to deal with the cost and emotional stress of downsizing or losing their independence."

Paul went on to say, "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."

Paul finished off stating, "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."

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 for, 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 — please note: this represents 50% of the annual rate of the full Age Pension. This is great news as we have been advocating for this! 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 can provide for them.

A Pension Loans Scheme could help you tap into the equity of your biggest investment, your home, without having to leave it.

If you're retired and own your own property in Australia, you may be eligible for the PLS.

Click on the button below to use our PLS calculator, and find out if you're eligible today.