Janet (73) is a single self funded retiree who owns her apartment in Melbourne.
She is finding that her conservatively managed portfolio of superannuation and term deposits is not providing the yields she used to receive placing strain on funding her lifestyle.
She is interested in drawing on the PLS for a few years until cash rates improve to preserve her superannuation as much as she can.
Home Value: $1 million
Age Pension Before Pension Boost:nil per/year
Age Pension Plus Pension Boost:$30,000 per/year
Pension Boost could help Janet apply for the Pension Loans Scheme (PLS). In this case, she could get up to an additional $56,012 per year to live on but chooses to draw $30,000 per year to top up her superannuation pension for 5 years.
This would mean she would be able to enjoy her preferred lifestyle until markets recover.
Janet will be able to boost her income by this amount for 5 years - until she is 78.
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 she would still own approximately 83% of her property ($1.122 million).
If Janet lived to 93 (20 years), she would still own approximately 81% of her home ($1.458 million).Note: these numbers assume the value of Janet's property grows by an average of 3% per year.
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