Billions of dollars 'stuck in term deposits'

Billions of dollars of Australians’ money is stuck in investments, potentially including best term deposits.

According to research conducted by Morningtar, there is as much as $25 billion locked away in investments such as superannuation savings accounts and home loans property funds.

This is a result of a freeze imposed on withdrawals last October, when the federal government introduced a guarantee on bank deposits, which excluded the funds.

However, the Australian Securities and Investments Commission made adjustments to the regulations surrounding withdrawals, which meant people could withdraw a total of $100,000 a year from their savings accounts.

This was opposed to the previous rules that stipulated only $80,000 could be taken out annually in a series of four instalments.

Michael O’Neill, National Seniors chief, commented: "The changes to existing relief provisions, which increase flexibility for operators, will make it easier for consumers to access their funds if they meet the hardship criteria."

He added people wanted the government to unfreeze their money as soon as possible, since they are currently living on a low income.

Meanwhile, women may be worse off than men, since according to the Association of Superannuation Funds, they receive less for their retirement than men.

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