Aussies unprepared for a crisis

Australians lack the financial safety net to provide support during difficult circumstances, new research from Aviva reveals.

The insurer has found that one in two Aussies admits to being unprepared for a drop in earnings, illness or other crisis situations, with 51 per cent claiming they didn’t have enough money stashed away in savings accounts to see them through such problems.

Speaking to the Cairns Post, AccountantsRus chief executive Adrian Raftery, said that it is vital that consumers have a crisis fund to call on in times of need.

"You need to have the equivalent of three months’ salary as emergency funds to cover for a rainy day," he said, adding that "emergency funds need to be readily accessible within a week, ideally 24 hours".

Elsewhere, the Sydney Morning Herald’s personal finance adviser Noel Whittaker has advised that for those who are looking to protect their savings from shrinking interest rates, a term deposit will provide high returns, but lack flexibility.

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