As you move into your older years your lifestyle changes and so do your finances. When that happens, you may find that accessing finance is not as easy as it was when you were earning an income from employment.
However, there are lenders that will consider you for a personal loan when you are retired. These loans can help you access money if you don't have sufficient time to save for it or if you don't want to dip into your equity.
Find out what your loan options are in our guide below.
What are retired personal loans?
A retired personal loan is a type of personal loan that is either specifically designed for retired applicants or simply a personal loan from a lender that does not deem retirees ineligible.
Not having an income as well as being more senior can sometimes make getting a personal loan more difficult for people. Lenders can view it as a sign that you could be less likely to be able to repay the loan. However, this is not always the case. There are many lenders who may be willing to work with you when you are retired.
How do retired personal loans work?
Retired personal loans work much like any other personal loan, but they are available for people who are currently in retirement. If you are retired, you may find it easier to qualify for a secured personal loan than an unsecured one. This is because securing a loan with collateral poses less risk to a lender as they can recoup the funds by selling your property if you become unable to repay the loan.
If you opt for an unsecured personal loan, you may find that as a retiree you are offered a shorter loan term than younger people or people in full-time employment to mitigate the risk to the lender. You may also be offered a higher interest rate and/or fees, although this will depend on the lender and on your credit rating.
What type of retirement situations are considered?
Self-funded retirees. If you earn income from investments such as rental properties, super or your own nest egg, you are referred to as a self-funded retiree. If you're in this situation, you may require access to finance because you don't have cash assets or you need quicker access to finance than your situation allows. While your situation can make it difficult for some lenders to assess you, you are still eligible for personal loans. Make sure you have as much documentary proof of your assets and income as you can locate to prove to the lender that you'll be able to manage your loan.
Those on the age pension, carer's supplement or disability pension. Earning Centrelink payments as income even if it is your sole income does not disqualify you from finance. Check the table below for loan options available to you.
Older Australians who are still employed. If you have steady employment, even if it is only part-time, this income will be considered by lenders. Remember minimum income criteria apply so check this before submitting your application.
Non-residents. The majority of lenders will require that you be an Australian citizen or permanent Australian resident. However, some lenders consider non-residents for loans even if they are older. You can compare temporary resident personal loans on this guide.
Those in difficult financial situations. If you receive a low income due to your family situation or debts or you're in need of emergency finance, there are options for you. Give the free financial counselling hotline a call on 1800 007 007 to find out what's available.
Below is a list of personal loans available for comparison on Finder. You can find out which ones will consider you for a loan while you are retired and the eligibility criteria you will need to meet to apply.
Brand
Do they consider retired applicants?
Criteria
Learn about loan offerings
ANZ
You need to provide evidence of regular income, for example from investments, rental income or Centrelink.
Bankwest
You need proof of income, for example a letter from Centrelink or from your super fund.
Bank of Melbourne
You're required to be employed for a personal loan.
BankSA
The age pension is an acceptable form of income.
Bendigo Bank
You need to be in paid employment.
CommBank
You must earn over $14,000 per year and meet the residency requirements.
CUA
You need to be currently employed.
Fair Go Finance
Centrelink cannot be your only source of income.
Gateway Bank
You need to be currently employed.
Latitude Financial Services
You need to be currently employed.
IMB
You need to be employed in addition to your Centrelink income.
ME Bank
You can apply – applications are handled on a case-by-case basis.
NAB
You need to earn a regular income and have good credit.
NRMA
You need to be in regular employment.
Plenti
You need to have a regular source of income that you can demonstrate.
RACV
You need to be in regular employment.
RACQ
You need to be earning a sufficient income to manage the loan.
SocietyOne
You need to earn more than $30,000 p.a.
St.George
You can apply – applications are handled on a case-by-case basis.
Secured personal loans. These loans require you to attach a high-value asset as a guarantee. In return, you are able to borrow the value of that asset as a loan. Examples of assets include vehicles, term deposits or equity in your home.
Unsecured personal loans. You don't have to attach any asset to this loan as it's unsecured. You can use this loan for investment purposes, to take a holiday, buy a used vehicle or to consolidate debt.
Car loans. If you're looking to purchase a new or used vehicle, you can consider a car loan. These loans offer competitive rates because the vehicle you purchase is used to guarantee the loan.
Overdrafts. This is a convenient credit product that lets you draw over and above your account balance in your everyday transaction account.
Short-term loans. If you have bad credit or need emergency finance, a small amount loan may be one to consider. Keep in mind the high cost of these loans before you apply.
As a couple, Linda and Grant receive $1,270 in super payments every fortnight. They've paid off their house and have a small source of additional income from a rented-out investment property. While their payments are enough to support their lifestyle, they don't have the means to make additional larger purchases. When their car stops working, they want to take out a personal loan to buy a replacement.
Option 1: They are with CommBank and want to take out a loan with them. They look and see that they can borrow $5,000 at an interest rate of 9.49% p.a.1 for 4 years. While the repayments of $125.591 are manageable, CommBank requires the car to be less than 5 years old. Linda and Grant can only afford an older car.
Option 2: An unsecured loan option, the Citi Ready Credit, will let them borrow $75,000 for a fixed rate of p.a.1 for a term of 5 years. They like the fixed rate because it will let them plan for their repayments and the competitive rate on offer seals the deal for them. All they have to do is prove they have a taxable income of $40,000 p.a. and they can buy the car they had in mind.
1 Rates are correct at the time of writing.
* This is a fictional, but realistic, example.
Pros and cons of retired personal loans
There are a number of benefits and potential drawbacks to applying for a personal loan as a retiree. These include:
Pros
Cover expenses. A personal loan can help you to enjoy your retirement in the way you want to. Whether you want to take a trip away, renovate your home, buy a new car or any other legitimate purpose, a personal loan can help you to achieve this.
Protect your super/savings. Utilising a personal loan rather than dipping into your personal savings or superannuation fund means you aren't spending money that you may need later down the line.
Spread out the cost. Using a personal loan rather than paying for a large expense out of your personal savings enables you to spread the cost of your purchase(s) over a significant period. This can make budgeting much easier.
Cost-effective if secured. Using collateral on a personal loan, which may be easier to qualify for when you are retired, can reduce your interest rate.
Cons
Fewer options. You may find as a retiree that your options are more limited than someone in full-time employment. Depending on your age, you may also find your options more limited than a younger person.
Higher cost. You may be offered a higher interest rate than an employed person, especially if you're looking for an unsecured personal loan.
Lower chance of approval. A lender may be more likely to reject your application if you are not receiving an income from employment. You can mitigate this risk by checking the eligibility criteria carefully before applying and speaking to the lender directly to ascertain whether or not being approved is likely in your current situation.
Financial stress. As a pensioner, you may be offered a shorter loan period than someone with a regular income. Having a shorter loan term will generally mean higher repayments, which might be difficult to keep on top of if you have a tight budget.
The dos and don'ts of personal loans for retired applicants
Dos
Read the eligibility criteria. This is essential before you apply for any loan especially if you are retired as you may be less likely to be eligible for loans than someone who has a regular income. Ensure that your lender will consider retired applicants and ideally speak to them beforehand if you are uncertain.
Check your credit score. You are generally more likely to be approved for a personal loan if you have a good credit score. If you are unsure about your current credit rating, you can check it for free with our credit report checking technology.
Consider using asset security. Using collateral will likely increase your chances of approval and potentially lower your interest rate, so it's worth considering as an option. However, you should also weigh up the risks involved. If for any reason you are unable to repay the loan, you will likely lose your property when the lender sells it to recoup the loan funds and costs.
Consider a guarantor. If you don't have or wish to use asset security, you can also consider opting for a loan guarantor. This could be an adult child (18+ years), another family member or a friend. A guarantor could increase your chances of loan approval. Just be aware that if you are for any reason unable to meet your repayments, your guarantor will be responsible for your loan.
Make a budget. If you don't already have a budget, it's a good idea to make one that consists of your current inflow and outflow. Once you have this, factor in your potential loan repayments (you can use our personal loan calculator to help you) and see whether you will comfortably afford your repayments.
Don'ts
Over-borrow. When you consider your potential loan repayments alongside your budget, it's important to be realistic about how much you can reasonably afford to repay. If you're retired, the loan term you could be offered may end up being shorter than you would ideally prefer, and a longer loan term means higher repayments. Make sure that you can factor this comfortably into your budget before submitting an application.
Take big risks. Don't use asset collateral or a guarantor if you are unsure if you can meet the repayments comfortably. You could lose your property or the property of a loved one if for any reason you are unable to meet your repayments.
Avoid doing your homework. Reverse mortgages and refinancing could be risky and/or expensive if you are not sure about everything that is involved. Know exactly what you're applying for and how much it will cost you before submitting a loan application.
How do I know if I'm eligible?
If it's unclear whether you meet the minimum eligibility criteria – for example, you may have income from investments that isn't regular – then it's best to get in touch with a lender before submitting your application.
Every personal loan application will be listed on your credit file and can hurt your chances at being approved for subsequent loans. Lenders will not be able to tell you for sure whether you will be approved until you submit your application, but they may be able to clarify certain criteria or provide additional details.
To give yourself the best chance of being approved, make sure you have all of your information on hand before starting the application. This includes:
Personal information. Your name, contact, identification information and details regarding your family situation.
Loan details. Explain how much you need and the purpose of the loan.
Financials. Remember to include all sources of income and provide evidence of this. You'll also need details of debts and liabilities.
Assets. What assets do you hold? This may be your own home, rental properties or vehicles.
You may be able to save the form if you don't have all of your information on hand to come back to it later, or download a PDF of the application form from the lender's website to find out everything you need before you start.
Personal loan applications usually don't take more than 10 to 15 minutes to complete if you have all of your information on hand.
Finding the right loan in retirement is key to keeping your finances secure. Compare all of your options thoroughly before submitting your application.
Why compare personal loans with Finder?
Addicted to details. We know taking out a personal loan is something you'll be hooked up with for a while. That's why we put hours into research for this guide (and still do at least once a month)
Rates obsessed. Lenders come in all shapes and sizes, that's why we don't just track the big banks, but all the digi folk too. Pretty much everyone but your parents to be honest.
Cash for whatever you need. Lending rates verified from 180+ products day and night. Whether you're buying a car, rennovating your home or heck just ready to let loose with the spending - we got you.
Elizabeth Barry was the lead editor for Finder. She has over 10 years' experience writing about a range of topics with a focus on personal finance. You’ll find her writing and commentary in a range of publications and media including Seven News, the ABC, MSN, the Irish Times and Singapore Business Review. See full bio
Elizabeth's expertise
Elizabeth has written 218 Finder guides across topics including:
Bria Horne is a writer for Finder, with a specialist knowledge of personal loans, car loans and business loans. Originally from the UK, Bria has been a professional personal finance writer in Australia for over 2 years. She has an M.A and B.A in Philosophy and Literature from the University of Sussex, and previously worked on the UK’s leading hospitality publication. See full bio
lendlab is an Australian lender that offers personal loans to both good and bad credit applicants. Find out more about lendlab's rates, fees and features.
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Addicted to details. We know taking out a personal loan is something you'll be hooked up with for a while. That's why we put hours into research for this guide (and still do at least once a month)
Rates obsessed. Lenders come in all shapes and sizes, that's why we don't just track the big banks, but all the digi folk too. Pretty much everyone but your parents to be honest. 
Cash for whatever you need. Lending rates verified from 180+ products day and night. Whether you're buying a car, rennovating your home or heck just ready to let loose with the spending - we got you.
