Tag Archives: PLS

CPD: The role of the Centrelink PLS in addressing Australia’s retirement funding challenge

  Australia’s retirement income policy has been traditionally framed as having three pillars: superannuation, non-superannuation savings and the Age Pension. However, for many Australian baby boomers these three pillars provide inadequate resources to fund 25+ years of retirement. Will the government’s revamp of its Centrelink Pension Loans Scheme (PLS) fill the void? Household Capital discusses the important role home equity can play in retirement funding; it examines where the traditional bank reverse mortgages fell short and the role the Centrelink PLS and other strategies can play within a broader long term retirement plan.   Australians are living longer; since the introduction of compulsory super, Australian retirees have gained an extra decade of longevity. This extra time in retirement should be celebrated, but for many, there’s a major downside – a longer lifetime to fund.   Superannuation assets totalled $2.8 trillion at the end of the March 2019 quarter; despite this growth, for...

Revamped PLS welcomed by Household Capital

  Household Capital, an independent, specialist retirement funding provider, yesterday welcomed the federal government’s revamped Pension Loans Scheme (PLS). Dr Joshua Funder, Household Capital’s Chief Executive Officer, commented: “Australian retirees need better funding solutions.”   “The PLS revamp sees the government acknowledge the critical role home equity can play in long-term funding retirement.” Living longer means new approaches are required Australia’s retirees are living longer, with many facing the prospect of outliving their retirement savings. Although the Centrelink administered PLS has been available for twenty-five years, it’s had limited take up.   The changes that come into effect today will make the Centrelink PLS more widely available to Australians of Age Pension age who qualify for a full or part eligible pension. The new arrangements will allow most home-owning pensioners to access an amount up to 50 percent above the full pension.   According to Dr Funder, Australian retirees really...

Three ways to release the equity in your home

    Australia’s retirees are being challenged like never before: Nearly 20 percent of those aged 60-64, and 12 percent of those aged 65-69, are paying a mortgage Historically low interest rates are impacting retirement income, exacerbated by government inaction on deeming rates More than 130,000 people are waiting for government-funded in-home care, with no guarantee of getting the level of care required Refundable Accommodation Deposits (RADs) generally range from $450,000 to $1 million in metropolitan areas.   We are living longer than ever, and people look forward to a long, active retirement. At the same time, many people don’t have the savings to fund 20 or 30 years of retirement.   There's the challenge – a healthcare system and standard of living that’s resulted in longer, healthier lives and a growing number of people who can’t adequately fund their retirement.   What are the options? Most Australians want to...
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