Retiree reverse mortgage scheme needs overhaul not facelift

The federal government is considering renaming its “Pensions Loan Scheme’ (PLS), which was broadened in the May 2021 Budget .

The expanded PLS allows retirees to borrow up to 150% of the aged pension rate against the equity in their home and is open to all retirees over the age of 60, not just those on the pension as the name of the scheme suggests.

Anne Ruston, the Minister for Families and Social Services, says the government wants to give more choice to 3.8 million retirees to tap $500 billion worth of home equity, as recommended by the recent retirement income review:

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