Retirees can look for loans anywhere that other borrowers might apply for a loan. Common retiree loans include home equity loans, 401(k) loans, debt consolidation loans, and personal loans.
Lenders will consider pension, Social Security, and investment income as your regular income. They will consider your annuity, survivor, or spousal benefits and retirement account income as long as you can prove it will continue for at least 3 years. Even your assets can contribute to your ability to get a loan.
Can I get a loan if I'm retired? Yes, you can get a personal loan if you're retired. Lenders will judge each loan application on a case by case basis.
Although you're able to borrow against your retirement account in many cases, it's far from an ideal financing source. The risks that may come as a result are steep — some of which may even set back your retirement planning if you can't keep up with payments.
Retirees can get loans, but approval depends on the lender's criteria. Traditional lenders may hesitate to lend when you're over a certain age, but Alpine Credits will always have financing options available regardless of your age.
Requirements for a retiree loan are similar to those of other borrowers. Lenders will need to see all your sources of income, and you'll also need a low debt-to-income ratio (generally below 50%) and high credit score (requirements vary by type of loan). You'll also need assets to back up a secured loan.
The $1,200 payment is a one-time direct deposit issued by the Canada Revenue Agency for seniors classified as low income based on their most recent tax return. The payment is not a loan, does not need to be repaid and does not replace existing monthly benefits.
The loan amount typically ranges from 50% to 90% of your monthly pension, depending on the lender's policies and your pension scheme. What are the eligibility criteria for a personal loan against a pension?
To apply for a pension loan, you'll need to meet the following criteria: You must establish SIPP/SSAS before applying. Your chosen scheme can borrow up to 50% of the net value of your pension, subject to application.
If you receive the maximum rate of pension, you can get another 50% of that rate as a loan. If you do not receive any pension, you can get the full 150% as a loan.
Eligibility Criteria for Availing Personal Loan for Pensioners. Find below the basic eligibility criteria defined by various banks offering personal loans to pensioners that shall vary from lender to lender: Age criteria: 55-65 years or above (Usually varies from bank to bank)
In 2018, Certified Financial Planner Wes Moss wrote this: “For every $1,000 per month you want to have at your disposal in retirement, you need to have $240,000 saved.” (Source: WesMoss.com). He called this “The 1,000 Bucks-A-Month Rule.”
It's absolutely possible to get a personal loan while retired. The biggest factors are your credit score and your debt-to-income ratio. If your credit score is 670 or above and your DTI is 40% or below, you should be eligible for most personal loans.
Assets Test
A single homeowner can have up to $714,500 of assessable assets and receive a part pension – for a single non-homeowner the higher threshold is $972,500. For a couple, the higher threshold to $1,074,000 for a homeowner and $1,332,000 for a non-homeowner.
The amount you save has no effect on your State Pension. Whether you have savings accounts, personal pensions, property or other sources of income, your State Pension will remain the same.
Lenders can't discriminate against you based on age, but your income will play a large role in whether you're accepted and how much you can borrow. With no salary coming in, you may find it difficult to get approved for a loan, or you may face shorter terms and higher interest rates, to offset the risk to the lender.
7 Loan Options for Seniors on Social Security
Most plans offer Retirement Plan Loans with: Minimum: $1,000 (or plan-specified amount) Maximum: Lesser of 50% vested balance or $50,000 (reduced by highest loan in past 12 months) Interest rate: Prime + 1% (state rules may apply)
The Low-Income Seniors' Benefit consists of a $400 annual payment for those in receipt of the following federal programs: the Guaranteed Income Supplement, the Allowance for the Survivor, or the Allowance.
All eligible seniors aged 65 to 74 will see their OAS payments increase in January 2026. The adjustment applies automatically, provided eligibility requirements are met. For this group, the increase helps offset rising everyday expenses such as groceries, utilities, and transportation.
From 6 April 2025, the State Pension will increase by 4.1%. This is the amount of inflation measured by CPI for September 2024.
The law makes it illegal for creditors to discriminate based on race, color, religion, national origin, sex, marital status, age, or because all (or part) of a person's income comes from public assistance or because the applicant has in good faith exercised a right under the Consumer Credit Protection Act.
But here's the good news: you can use your Social Security income to qualify for personal loans from some financial institutions.
However, the maximum loan liability at the time of sanction and disbursement of loan under both the component shall not exceed 20 months' pension amount or Rs. 10,00,000/- (whichever is lower).