While a constant concern since the Global Financial Crisis (GFC) has been that easy monetary policies would cause surging inflation it simply hasn’t occurred. The absence of inflationary pressures is a good thing, as it means the global “sweet spot” of okay economic growth, with low interest rates and bond yields can continue. But what if we end up with sustained deflation? A renewed plunge in bond yields over the last year to record or near record lows is warning of just that.
Research shows Australians’ savings rates are among the worst in the world.
The global survey of 16,000 showed Australians expect their retirement to last an average of 23 years, but their savings and investments are on track to run dry within 10 years, making it the largest gap in Asia and the fourth largest globally.
The research also revealed more than half of the nation has never saved specifically for retirement outside of compulsory superannuation.
Globally, an average of 39 per cent of people have not saved or are planning to save for retirement, compared to 53 per cent in Australia.
With wage growth in Australia now slowing to 2.6 per cent per annum, the lowest rate of growth since 1998, many Australians were struggling to afford retirement.
One in six people believe they will never be in a financial position to fully retire.
The research found more than a third of retirees felt their preparation was insufficient and half feel they should have started saving at age 30.
2014 saw good returns for diversified investors as the global economy continued to grow and monetary conditions remained easy, but a combination of uneven global growth, worries about deflation, plunging commodity prices, soft growth in Australia and geopolitical concerns meant returns were uneven across asset classes.
The past year has seen the world oil price fall by more than 50%. Late last year as the fall accelerated this started to act as a drag on share markets and this has resumed at the start of this year as the oil price has continued to slide. But what’s driving the oil price plunge and isn’t a fall in oil prices meant to be good news?
Like Us on Facebook
- Christmas crackersDecember 23, 2020 - 3:33 am
If you can’t get enough of the dad jokes you find in your Christmas crackers, here are a few more for your festive feasts. What did Santa do when he went speed dating? He pulled a cracker! Why was the turkey in the pop group? Because he was the only one with drumsticks! What do […]
- Top money-saving tips for the new yearDecember 23, 2020 - 3:31 am
How’s your credit card looking after doing all the Christmas shopping? Have you made yet another New Year’s resolution to be better with your money? Whatever your situation, we could probably all do with spending a little less and saving a little more. How to save money on bills Avoid the lazy tax If you’ve […]
Tailored Lifetime Solutions
Level 1, Suite 8
385 Belmore Rd, BALWYN EAST VIC 3103
Note: Entry to office via Kalonga Rd, visitor parking at rear of building
P. 03 9851 0300 (Victoria only)
P. 1800 888 557 (Interstate Only)
F. 03 9851 0333
Tailored Lifetime Solutions Pty Ltd, ABN 54 106 840 180, is an Authorised Representative and credit representative of AMP Financial Planning Pty Limited ABN 89 051 208 327, Australian Financial Services Licence and Australian Credit Licence No. 232706