Pension Boost is originating around 10 percent of its Government-run Pension Loans Scheme (PLS) reverse mortgages with self-funded retirees since the reforms were introduced in July 2019.
The changes, which now allow self-funded retirees to access the PLS, has been well timed as these retirees have been adversely impacted by the economic impacts of COVID-19 - with lower cash rates, the falls in bank dividends, plus lower rental income from investment properties.
Self-funded retirees have been reliant on these sources to fund their lifestyle. Moreover, this group is highly reluctant to sell down assets given market volatility impacts on portfolios. The temporary 50% reduction in the minimum drawdown rates from super pensions has provided some shelter, but that does not solve their need for income to live on.
Self-funded retirees can now access the government's Pension Loans Scheme (PLS) to tap the equity they hold in real property by up to $56,012 yearly.
Example: Self-funded couple aged 70 with $2m in their SMSF; accessing PLS
Want to know if you’re eligible for the scheme? Try our online PLS Calculator today.