It is open to full and part age pensioners and self-funded retirees who own property in Australia. Under the scheme's current conditions age pensioners can top up their pension to receive a total amount of fortnightly pension plus loan amount of up to per cent - or 1. Self and part-funded retirees can receive per cent of the aged pension. The loan can be paid back at any time including on the sale of the property or from the recipient's estate.
The interest rate is currently 4. However, from July , eligible people will be able to access one or two lump sum payments in any 12 month period to a maximum of 50 per cent of the age pension. Mr Strandquist said the ability to access a lump sum through the Pension Loan Scheme was welcome as it allowed recipients to make home improvements like putting in a ramp for a wheelchair or other home modifications; or to urgently replace a car.
However, he said AIR was disappointed that the government had not reduced the interest rate which was far in excess of what people were paying on a traditional home loan. While AIR is happy with its wins in the federal budget it admits there were still some disappointments.
The association had submitted an extensive pre-budget submission and some of its key proposal have not been addressed by Treasury, including a reduction in the deeming rate, more flexibility with the current aged based percentage drawdowns for account-based pensions with a broadening of the age ranges and a lowering of the minimum drawdown percentages once a retiree has reached 75 years of age.
The full AIR pre-budget submission is here. Without new investment options, he said retirees would be left with no option but to redirect their savings to the share market in a period of high volatility. National Seniors Australia chief advocate Ian Henschke also criticised the lack of attention given to self-funded retirees during the crisis.
He urged the government not to forget the issues considered by Treasury's Retirement Income Review. While the final report hasn't been made public, National Seniors Australia made a submission to the panel recommending a closer look at the taper rate, which cuts people off from the pension due to their assets. Mr Henschke also recommended the Pension Loan Scheme, which allows all people of pension age to draw down on their home's equity to help fund their retirement, should be available at a lower rate.
A spokesman for the Treasurer declined to comment on these concerns, instead saying the budget would be delivered on Tuesday. The most important news, analysis and insights delivered to your inbox at the start and end of each day. Self-funded retirees 'the forgotten people' ahead of budget.
Recent data from the Department of Social Services shows that our campaign to reduce deeming rates has contributed to an increase in the number of people with a CSHC. National Seniors success in getting the federal government to reduce deeming rates, means more and more self-funded retirees are eligible for the CSHC.
If you think you are one of them then you should apply now if you want to receive the next stimulus payment. To support our Fairness in Retirement Income campaign click here and to sign up for weekly updates from National Seniors click here. Find out if you are eligible for a stimulus payment here.
Retirement Essentials is a partner of National Seniors Australia and is not affiliated with any federal government department or agency. If, after using their free calculator, you decide to use their streamlined application support service, fees apply.
As a National Seniors member you can now download your free Homesuite Property Report to learn the estimated value of your home. Are self-funded retirees missing out on stimulus?
0コメント