The Great Pension Shake-up – Is a 'HECS-Style' Loan the Future?

Is it time for a radical rethink of how we fund retirement in Australia?  Currently, Australia’s pension system excludes the family home from asset testing—meaning a retiree living in a multi-million dollar mansion can claim the same support as a renter with nothing. But a bold new proposal from the Policy Institute Australia is making waves, suggesting a "HECS-style" scheme could save the taxpayer $21 billion a year. We’re joined by Policy Institute Australia CEO Amy Auster to discuss the controversial Home Truths report. We’re breaking down the "Retirement Contribution Scheme" (ReCS): a HECS-style, interest-free loan that would allow retirees to draw down on their home equity for cash flow, to be repaid only when the home is sold.See omnystudio.com/listener for privacy information.