Retirees unhappy with rate cut
RETIREES have hit out at the Reserve Bank's decision to cut interest rates on Tuesday, saying it was a blow to older Australians living off their investments.
The cash rate was cut on Tuesday by 25 basis points, down to 3.25%.
But while many groups welcomed the cut, National Seniors chief executive Michael O'Neill said the cut shocked older Australians.
"There's two sides to this story: while families celebrate, retirees feel the pinch," said O'Neill.
"An interest rate fall is a blow for retirees living off simple term deposits.
"Mr O'Neill said the cut meant rates older Australians received on investments were dwindling as living costs such as rent and power bills continued to rise.
"To make matters worse, the official deeming rates, which are supposed to even out interest rate movements, haven't shifted since 2010," he said.
"Low bond yields, market volatility and falling interest rates are a triple whammy for seniors," he said.