With increasing numbers of Australians having their superannuation balances affected by weaker returns and low share dividends there's every chance more people will be eligible for the Age Pension or part age pension.
Jeff Oughton is a consulting economist with ME Bank and he's already considering the Pension Loan Scheme despite being two years from retirement age himself.
There's been a push from National Seniors Australia to promote the loan scheme which tops up existing government pension payments up to half their annual value, paid in fortnightly installments.
Ian Henschke is the organisation's chief advocate and he says although the scheme is a good one, the interest rate charged should be lowered from its current 4.5 per cent.
Senior couple sitting on a wooden bench in a park Source: Getty Images
The Federal Government has defended the current rate, saying it compares well with commercially available home equity loans, more commonly known as reverse mortgage loans, which are often in excess of 5 per cent.
Mr Henschke says the government also needs to make more people aware the scheme exists so they can access it.
As COVID-19 continues to hamper the economy, there's every chance more Australians will qualify for the scheme.
One of the biggest reasons behind retirees needing to access more money is often for health-care and age care related costs.
Last year the government expanded the scheme to include self funded retirees who either get or are eligible to receive a qualifying pension which includes the Age Pension, the Carer Pension and the Disability Support pension.
Source: SBS
For people like Jeff Oughton, the chance to access the equity in his home and help his family - which includes four children and three grandchildren - is the biggest plus underpinning the Pension Loan Scheme.
