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

They’re yet to make a move, but it’s likely the government will soon offer a deal that tries to convince

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?