FEDERAL BUDGET 2020 – HOW DOES IT EFFECT SENIORS?

In the 2020 Federal budget, two $250 payments were announced for pensioners following the $750 payments in earlier this year. The government will be spending $2.6 billion over the next three years on the payments to help stimulate the struggling economy and ease some financial stress due to COVID -19 pandemic.

AM I ELIGIBILIE FOR THE $250 PAYMENTS?

It’s not only for pensioners, but if you receive certain types of the government payments, support or hold any of the healthcare cards, then you may be eligible.

For more information on eligibility check : Coronavirus (COVID-19) information and support

ARE SELF- FUNDED RETIREES LEFT OUT?

Many self-funded retirees are not eligible for these extra payments. In Australia, there are two million seniors who are fully/partly self-fund their retirement. However, their incomes have been cut by historic low interest rates, volatility in share market and rental markets during the coronavirus pandemic. 

National Seniors Australia chief advocate, Ian Henschke, criticised the lack of attention given to self-funded retirees. While there has been major spending to stimulate the economy and ease financial challenges due to pandemic, there has been no federal support for them.

WHAT DO INDUSTRY EXPERTS MAKE OF IT?

While it’s great to see the federal government delivering extra help to pensioners, there have been no specific measures of support for Self-funded retirees. 

National Seniors Australia urged the government to consider the issues by the Treasury’s Retirement Income Review and have also made a recommendation to look at the taper rate, which cuts off the pension based on their assets.

Mr Henschke recommend Pension Loan Scheme, which can allow people of pension age to draw down on their home’s equity to help fund their retirement plans and this should be available at a lower rate.

HOW CAN WE HELP?

Seniors First lending partners are available to help you through this difficult time.

If you are interested in reverse mortgage, new rates are available from 5.09%. By applying for a reverse mortgage solution, your home equity can be ‘unlocked’ and all eligible seniors can access more cash, to enjoy a better retirement lifestyle.

[ RELATED POST: How does a Reverse Mortgage affect your Age pension? ]

If you want to know more about reverse mortgage, you can call Seniors First on 1300 745 745 or visit www.seniorsfirst.com.au