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Media Release | 20th November 2020Self-Funded Retirees can access Government loan scheme

Since the onset of COVID-19, Pension Boost has received a material increase in enquiry from self-funded retirees with around 10% of HEAS applications being from this segment. They are highly anxious about the adverse impact of the pandemic on their investment portfolios and the cash flows they used to rely on being decimated. Cash rates are negligible, bank dividends have been dramatically reduced (and in some institutions ceased) as has the rentals from investment properties.

Self-funded retirees had relied on these sources to fund their lifestyle. Moreover, this group is highly reluctant to sell down assets given market volatility impacts on portfolios, with the ASX200 whilst it has recovered, still 15% off its pre COVID highs. The temporary 50% reduction in the minimum drawdown rates from super pensions in SMSFs has provided some shelter but that does not solve their need for income to live on.

Median house value of clients is $540,000

Pension Boost has found that the median house price for the retirees it is helping apply for a HEAS loan is $540,000 and from all corners of Australia.

Example: Self-funded couple aged 74 with $2m in their SMSF; accessing HEAS

  • Own their $1.5m home outright
  • Want to preserve as much of their SMSF portfolio as possible so chose to draw the revised pension minimum of 2.5%
  • Use the HEAS to top up their income
  • Their super pension will provide $50,000 pa and they will draw the maximum HEAS to access $2,135 per fortnight (or $55,520 yearly) for 2 years when, hopefully, they expect markets to recover post COVID
  • Once markets recover, they intend to draw more than the minimum super pension to paydown the HEAS (even though they are not obliged to make any repayments of the HEAS being a reverse mortgage-style solution)

Pension Boost works on behalf of Retirees considering the HEAS

Pension Boost is a private commercial venture founded by Paul Rogan in 2019, and our purpose is to assist everyday Australian seniors to live a better life. There are 1.8 million seniors on the Age Pension who own property, with many struggling to make ends meet.

Pension Boost are specialists in the Australian Government’s Home Equity Access Scheme (HEAS), previously known as the Pension Loans Scheme (PLS). We act as your agent when dealing with Centrelink/DVA to take the hassle out of the process for you.

Some of the ways Pension Boost assists seniors includes:

  • Raising awareness of the HEAS (one of the government's best kept secrets)
  • Educating seniors on what the HEAS is, its 'rules' and how it works
  • Assisting seniors and their families decide whether the HEAS may be of benefit to them
  • Demonstrating to seniors via our Pension Boost Calculator what the HEAS may mean for them and their families financially
  • Determining the type of Home Equity Access Loan that best suits a senior's individual circumstances
  • We remove the hassle of dealing with Centrelink/DVA by acting as an 'agent'
    • Assisting seniors with their application for the Home Equity Access Loan
    • Dealing with any questions or queries raised by Centrelink/DVA
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