The federal government is being urged to allow age pensioners to boost retirement incomes by borrowing against their homes.
As thousands of retirees are set to be cut off from the payment, key Senate crossbenchers want to extend the pension loans scheme to full pensioners.
The scheme now only allows part-pensioners or retirees who can't get the pension because of their assets to obtain a loan up to the full pension secured against their homes.
Independent senators Jacqui Lambie, Glenn Lazarus and Nick Xenophon and Motoring Enthusiast Party's Ricky Muir believe it will help those who are set to lose the pension under budget measures tightening the asset test threshold.
The government wants to cut off about 91,000 part-pensioners while 235,000 others will get less money under changes yet to be introduced to parliament.
Senator Xenophon has discussed including the proposal in his talks with Social Services Minister Scott Morrison.
But if the government didn't come on board, the group will introduce separate legislation to widen the scheme's eligibility.
"We want to give an option to discuss this with the government as part of our negotiations with them," Senator Xenophon told reporters in Canberra on Wednesday.
"It needs to be in the mix of discussions."
WHAT IS THE PENSION LOANS SCHEME?
* Reverse mortgage scheme where retirees can access an income stream by borrowing against their housing equity.
* Only part-pensioners or those unable to receive a full pension because of the income or assets test get access.
* Repayments can be made at any time or debt can be retrieved from estate.
* Loan secured against value of home or any real estate owned.
