Australians urged to get 'balance' right in their savings

Australians have been advised to get a good balance in their investments when saving up for the long-term.

Financial planner and Your Money Generations columnist Kerrin Falconer noted that people saving up for retirement tend to struggle with the question of "capital growth versus income".

"You need to ensure that you have enough income to meet your everyday needs," she said in a column for the Herald Sun.

"But, and this is a big but, if you want to keep on being able to afford the lifestyle to which you have been accustomed, then your funds need to maintain their optimum purchasing power," she added.

Ms Falconer observed that many retirees are inclined to compare term deposits and invest their cash in such "defensive assets" because they know their capital will be safe.

However, she urged such consumers to consider the impact that inflation can have on purchasing power over a period of time, suggesting therefore that people get a good balance between both defensive and growth assets.

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