Grey nomads count cost of latest interest rate cut

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Grey nomads lose from interest rate cut
"Darn these endless interest rate cuts!"

While the latest cut to interest rates has been widely welcomed, many grey nomads won’t be joining in the celebrations.
What’s good news for people in debt, is less so for people with money in the bank. Pensioners, self-funded retirees and other older Australians living off their investments will now find themselves significantly worse off yet again.
Experts say that more than 1 million people fall into this category, including those who depend on term deposits for income … and many of whom are also travelling Australia in caravans, campervans and motorhomes.
The chief executive of National Seniors Australia, Michael O’Neill, said many could be losing an amount equivalent to 25% of a person’s wages following a series of rate cuts since November last year.
”Over the past 18 months, we’ve seen a reduction of about 1.75% from about 6%, so it’s over 25% reduction in the interest rate on offer,” Mr O’Neill told the Age newspaper.
The Combined Pensioners and Superannuants Association says pensions are likely to stay at the same level in the short term, so retirees might find themselves having to pay higher prices if lower rates led to an inflationary push.
Has the latest rate cut hit your income? Will it change your travel plans? Comment below.

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