Frank (75) and Mary (73) are a married couple who own their home outright in Lutana, Tasmania.
They used to receive a part Age Pension however due to the changes in 2017, they no longer qualify. Since then, they’ve found it challenging to maintain the quality of life they used to enjoy.
They are interested in the PLS and how it could replace what they lost via the Age Pension.
Home Value: $390,000
Home Loan: nil
Net Equity In Home: $390,000
Age Pension Before Pension Boost:$nil per fortnight (no longer qualify)
With Pension Boost:$10,400 per/year
Pension Boost Frank and Mary apply for the Pension Loans Scheme that suited their needs. In their case, whilst they could get up to an additional $2,135 per fortnight (or approx $55,520 per year) to live on, they felt they only needed $400 per fortnight (or $10,400 per year).
This would mean they would be able to afford their regular bills and enjoy a few of life’s little luxuries that they’d been going without.
Taking inflation into account, they will be able to boost their pension by this amount, for 22 years, until Frank is 97 and Mary 95.
You get paid fortnightly by the Australian Government
Your mortgage increases by the payment amount + interest
You only need to pay the Australian Government back when you move out of your house or sell it
After 10 years they would still own approximately 72% of their property ($377,500). If Mary lived to 93 (20 years), they would still own approximately 41% of their home ($288,000).Note: these numbers assume the value of Frank and Mary’s property grows by an average of 3% per year (which compares to the average residential property growth rate for houses in Lutana Tas over the past 25 years of 6.9% per year).
Leave your details below or call us on 1300 BOOSTNOW (1300 266 786).