Older Aussies lack knowledge on savings accounts

With certain parts of Australia being among the most expensive places to live in the entire world, it is absolutely crucial that people approaching retirement are making the most of their savings accounts.

The most recent World Cost of Living Survey indicated that Sydney and Melbourne are becoming more unaffordable and people living in these cities are finding it hard to make ends meet.

According to a new study conducted by the University of New South Wales, many ageing Aussies could face financial hardship when they stop working because lots of people don't fully understand how much money they have managed to save throughout their career, the Sydney Morning Herald reports.

Hazel Bateman – who was involved in the research process – told the news provider that Aussies aged between 50 and 74 have a "surprisingly poor" grasp of which investments will provide them with the best returns when they retire.

"People were basically clueless about the features of retirement products," she was quoted as saying.

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