These senators really want you to spend your money, now! 8



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They’re yet to make a move, but it’s likely the government will soon offer a deal that tries to convince baby boomers to give up their homes and spend the money they are “hoarding” in equity.

We know you’re not keen on that idea (can’t think why), but what about this one?

Four senators are leading the push for the revision of a scheme that allows retirees to stay in their home while spending its value.

Here’s how it works: the pension loan scheme allows eligible people to take out a loan based on the value of their home, they live off this money then the loan is repaid once they’ve shuffled off this mortal coil and the home is sold.

This scheme currently exists but the restrictions and eligibility are all a bit topsy-turvy.

The New Daily writes, “At present, someone on a full pension can’t borrow a cent, and somebody on a 50 per cent part-pension can borrow 50 per cent of another full pension amount. Somebody on zero pension can borrow up to 100 per cent of a full pension.

“Confused? You should be. The less you need the money, the more you can borrow!”

Independent senators Jacqui Lambie, Glenn Lazarus, Ricky Muir and Nick Xenophon want to make changes to the pension loan scheme and have this week released their costings to prove to the Turnbull government that it could work.

Their ideas were met with blank looks by Abbott and Hockey, but Scott Morrison might be more inclined to get behind them.

The changes they propose are increasing the amount full pensioners and part-pensioners can borrow, up to three times the pension, and secondly, allowing people with enough superannuation not to receive the pension to borrow up to that amount as well.

The idea is that the government would be able to offer the cash loans at rates far below anything ‘reverse mortgage’ providers could match.

The pension loan scheme is available to any eligible retiree who chooses to go down this path.

Would you consider this scheme? Why or why not? And are you tired of people telling us we’re “hoarding” equity?

Starts at 60 Writers

The Starts at 60 writers team seek out interesting topics and write them especially for you.

  1. Why oh why do I keep getting this feeling about Australian Federal politics? Every time we get rid of an idiot another one pops up. For christsake how hard is it for these dropkicks to understand I don’t have a spending problem it is the government that has a spending problem. My home is my castle, bought and paid for with the hard work and sacrifice of two people. It is not going to be mortgaged to any government with the financial track record of this one.Please note Government it is not my house that needs to be put into order.

    1 REPLY
    • Good words Tim, I fully agree, it’s about time they learnt some real skills in balancing books without being parasites. I’m sick of them selling off everything that belongs to the community which is deemed essential services, it’s always been their job to see these services were managed well.

  2. This may be useful to some people but all it tells me is the government has no idea how to manage the countries affairs without being propped up.

  3. Currently I have two lots of FWs trying to tell me what I should be doing. The old ones who are irresponsible with money and have huge debts and who keep telling me how lucky I am.

    And the other lot who sit on their posteriors with their noses in the trough in Canberra who tell me I have too much and I should share it.

    The government doesn’t have a debt problem. It is the private sector who has a huge debt problem which at some time or other is going to bite us all on the backside.

    Bugger off and leave me alone. My plan is to spend it before the lights are turned off. B|

  4. Let’s face it, you can’t take it with you. It is a way to be able to live of your asset and still live in your home… Either that, or introduce an inheritance tax. Your children did not work for it… You did, so why should they get it for nothing?

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