Compare term deposits as rates shift, retirees advised
Article by Mozo
Australian retirees have been urged to compare term deposits in order to make the most of the "good" financial trends this year.
National Features writer Kerrin Falconer suggested that there will be a number of "good, bad and unidentifiable" trends that will impact on retirees in 2011.
Among the good trends, she noted that interest rates look set to rise again this year.
"While this is bad news for the 30 per cent of Australians who have a mortgage, it is good news for retirees and others who have part of their investments in term deposits. Make sure you shop around for the best rate," she said in the article, which was presented in the Daily Telegraph.
Among the bad trends, it was observed that living costs are likely to go up, with retiree budgets set to take a hit from hikes in electricity, gas and water bills.
Commenting on the unidentifiable trends, meanwhile, Ms Falconer noted that the investment markets are still at the mercy of "X factor" events such as the global financial crisis.
She therefore advised retirees to be prepared for different outcomes, suggesting that they should have "a decent cash reserve and several investment baskets with at least one containing growth investments".
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