Aussies 'want stability when saving their money'

Wednesday 20 April 2011

Article by Mozo

Retirees and those preparing to end their career prefer to invest their earnings safely – perhaps in savings accounts – rather than risk their cash for better returns, according to a new report.

Stability 'is important for older Australian savers'

The study conducted by Investment Trends found that 86 per cent valued stable returns, while 91 per cent said tax effectiveness was vital.

Tim Cobb, chief operating officer at the firm, commented: "These results turn established wisdom on its head, with stable returns proving much more important than higher returns or lower costs."

He suggested that many people are proving more cautious because of the global financial crisis.

The expert observed that many will have experienced "large and unpredictable fluctuations in their retirement savings".

Earlier this month, a study conducted by TNS and commissioned by RaboDirect found that Aussies are losing between $4 billion and $6 billion a year in interest by not putting their money into savings accounts, reported the International Business Times.

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