Understanding The Pension Loans Scheme
The Pension Loans Scheme is a federal government initiative to help Australian retirees to supplement their income. Many Australian retirees have the bulk of their assets tied up in residential property. They are often said to be “asset rich but cash poor”.
The Pension Loans Scheme enables retirees in Australia to ‘liquidate’ their assets by getting a voluntary, non-taxable, fortnightly government loan using their residential homes as security. These loan payments can supplement other retirement income they may have, such as the age pension and superannuation entitlements. The Pension Loans Scheme is essentially a government reverse mortgage scheme.
In this eBook you will discover:
- How much income do you need to retire in Australia?
- The potential shortfall
- How does the Pension Loans Scheme work?
- How does a pension loan get repaid?
- What is the Maximum Loan Amount?
- Are there any ongoing Pension Loans Scheme fees?
- How long has the Pension Loans Scheme been available?