Up until June 2019, the Government’s Pension Loans Scheme (PLS) was designed as a ‘reverse mortgage’ style solution for a restricted group of later-life Australians (being seniors on part Age Pensions, or seniors who failed one, but not both, of the Income and Assets means tests) to enable them to ‘top up’ their pensions by a allowing them to access the equity in their homes.
Under the revised PLS rules introduced on 1 July 2019, seniors do not have to be receiving or eligible for the Age Pension to be eligible for the PLS. Self-funded retirees are now eligible, provided they (or their partner if in a couple):
Given its history, it’s easy to see why the name ‘Pension Loans Scheme’ was used. The problem is that post the PLS rule changes, the name is not as inclusive as it needs it to be, and it’s turning potential eligible seniors away.
So, what might be a more inclusive name? How about….Seniors Loans Scheme?
What's your suggestion?
If you would like to know what you may be eligible for under the PLS, try our quick and easy online calculator.