Boomer Bank shaken by economic crisis

The once formidable Boomer Bank has been left thoroughly shaken in the wake of the economic crisis, the Herald Sun reports.

Although young Aussies used to be able to call on their parents to pay off credit card debts or put down a lump sum as part of a new home loan deal, the days of limited credit lines from the bank of mum and dad may be well and truly numbered.

Research carried out by St Georges Bank has shown that 70 per cent of baby boomers have been so rocked by the financial crisis that they are considering delaying their retirement to rebuild their nest egg.

However, there may be some awkward discussions to be had between boomers and Gen Y, as 62 per cent of young people questioned by the bank said they expect their parents to pay for large one-off costs such as a deposit for a new home loan deal or wedding expenses.

Despite the rocky ride endured by retirement savers in recent months, the Westpac Melbourne Institute has this month insisted that high-interest savings accounts and term deposits are still the safest place to park spare cash.

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