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RETIREES and other investors relying on bank and other desposits are the losers after he Reserve Bank slashed interest rates to their lowest since the Global Financial crisis.
National Seniors chief executive Michael O’Neill said some pensioners might have $5000, $10,000 or $15,000 put aside in term deposits, "so they are impacted through to those would might have substantially more than that and are totally reliant on it".
Experts estimate more than one million, mostly older, Australians will be hit by reduced incomes through interest rates.
Self-funded retirees who rely only on cash investments have had their incomes cut by a quarter in the past year.
A Your Money analysis last month has found that since the Reserve Bank started cutting rates last year, typical returns from term deposits and online savings accounts have slumped 15-30 per cent.
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