{"id":1803,"date":"2023-03-16T22:55:18","date_gmt":"2023-03-16T22:55:18","guid":{"rendered":"https:\/\/blog.villages.com.au\/?p=1803"},"modified":"2023-03-16T22:56:18","modified_gmt":"2023-03-16T22:56:18","slug":"the-unheard-of-scheme-that-eases-the-cost-of-retirement","status":"publish","type":"post","link":"https:\/\/blog.villages.com.au\/money\/the-unheard-of-scheme-that-eases-the-cost-of-retirement\/","title":{"rendered":"The unheard of scheme that eases the cost of retirement"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"1803\" class=\"elementor elementor-1803\">\n\t\t\t\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-1791e28 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"1791e28\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-7123003\" data-id=\"7123003\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-e145561 elementor-drop-cap-yes elementor-drop-cap-view-stacked elementor-widget elementor-widget-text-editor\" data-id=\"e145561\" data-element_type=\"widget\" data-settings=\"{&quot;drop_cap&quot;:&quot;yes&quot;}\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<style>\/*! elementor - v3.15.0 - 20-08-2023 *\/\n.elementor-widget-text-editor.elementor-drop-cap-view-stacked .elementor-drop-cap{background-color:#69727d;color:#fff}.elementor-widget-text-editor.elementor-drop-cap-view-framed .elementor-drop-cap{color:#69727d;border:3px solid;background-color:transparent}.elementor-widget-text-editor:not(.elementor-drop-cap-view-default) .elementor-drop-cap{margin-top:8px}.elementor-widget-text-editor:not(.elementor-drop-cap-view-default) .elementor-drop-cap-letter{width:1em;height:1em}.elementor-widget-text-editor .elementor-drop-cap{float:left;text-align:center;line-height:1;font-size:50px}.elementor-widget-text-editor .elementor-drop-cap-letter{display:inline-block}<\/style>\t\t\t\t<p>W<strong>ith the dramatic rise in the cost of living \u2013 4.2% than 12 months ago &#8211; retirees have a new way to boost their retirement income.<\/strong><\/p><p>Services Australia\u2019s The Home Equity Access Scheme, a rebranded Pensions Loan Scheme, came into being on 1 January, and it does just that.<\/p><p>The Home Equity Access Scheme is a reverse mortgage style loan that allows borrowers of Age Pension age to receive a tax-free fortnightly income stream by taking out a loan against the equity in their home.<\/p><p>It allows the recipient to receive the fortnightly pension plus a loan of up to 150% of the maximum fortnightly rate of the pension.<\/p><p><strong>Self-funded retirees can get the whole 150% of the pension as a loan, while those on the maximum rate of Age Pension can get 50% of the pension as a loan.<\/strong><\/p><h3><strong>Example:<\/strong><\/h3><p>Joyce is a single pensioner who currently receives $120 service pension per fortnight. She can use a Home Equity Access Scheme to increase her payments to 150% of the maximum single rate of service pension, which is $1,539.75 per fortnight. Joyce can receive Home Equity Access Scheme loan payments of up to $1,419.75 per fortnight, which is $1,539.75 minus the $120 pension she receives.<\/p><p>The payments accrue as a debt secured against the person\u2019s nominated Australian real estate. This debt accrues interest, with safeguards limiting the maximum loan a person can accrue. Participation in the Scheme is entirely voluntary.<\/p><p>The debt is generally recovered from the sale of the secured property (unless it is transferred to a new property), or from the participant\u2019s estate, although voluntary repayments can be made at any time.<\/p><p><strong>The compound interest rate for the Home Equity Access Scheme is currently 3.95% per annum.<\/strong><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>With the dramatic rise in the cost of living \u2013 4.2% than 12 months ago &#8211; retirees have a new way to boost their retirement income. Services Australia\u2019s The Home Equity Access Scheme, a rebranded Pensions Loan Scheme, came into being on 1 January, and&#8230;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"content-type":"","om_disable_all_campaigns":false,"_mi_skip_tracking":false,"footnotes":""},"categories":[71],"tags":[77,83],"class_list":["post-1803","post","type-post","status-publish","format-standard","hentry","category-money","tag-financial-advice","tag-retirement-villages"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.villages.com.au/blog\/wp-json\/wp\/v2\/posts\/1803","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.villages.com.au/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.villages.com.au/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.villages.com.au/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.villages.com.au/blog\/wp-json\/wp\/v2\/comments?post=1803"}],"version-history":[{"count":5,"href":"https:\/\/www.villages.com.au/blog\/wp-json\/wp\/v2\/posts\/1803\/revisions"}],"predecessor-version":[{"id":1809,"href":"https:\/\/www.villages.com.au/blog\/wp-json\/wp\/v2\/posts\/1803\/revisions\/1809"}],"wp:attachment":[{"href":"https:\/\/www.villages.com.au/blog\/wp-json\/wp\/v2\/media?parent=1803"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.villages.com.au/blog\/wp-json\/wp\/v2\/categories?post=1803"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.villages.com.au/blog\/wp-json\/wp\/v2\/tags?post=1803"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}