Legislative Pension Loan Bill | Manning River Hours

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Retirees would benefit from greater flexibility and increased security when accessing loans, according to new legislation due to reach parliament. The proposed adjustments to the Pension Loans Scheme, which allows older Australians to obtain a voluntary loan to supplement their retirement income with local real estate as collateral, include a collateral debt owed that cannot exceed the equity in the property. guarantee. The new legislation will be presented to Parliament on Thursday. The other change would allow retirees to receive two lump sum payments over a year, capped at half the maximum bi-monthly rate for the year. This works out to $ 12,580 per year for a single person or $ 18,960 for a couple. The scheme currently allows retirees to supplement their payments with loans; singles can access $ 1,451, while couples can get $ 2,188. Social Services Minister Anne Ruston said the changes would give older Australians more choices to access them. “About 80 percent of Australians over 65 own a home and the Retirement Income Review has pointed out that leveraging a small portion of home equity can dramatically improve retirement outcomes for older Australians. “she said. “The Negative Equity Equity Guarantee will provide retirees peace of mind knowing that any debt to the government will never exceed the equity in the guaranteed property.” We want our older Australians to have more choice, more choice. financial independence and quality of life in their retirement years. The government will launch a campaign to promote the program. Australian Associated Press

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