4 Dec 2008

Quandry for elderly over falling interest rates

5:32 pm on 4 December 2008

Falling bank deposit rates are taking a toll on investment income for many superannuitants.

Greypower says the cut in the Official Cash Rate by the Reserve Bank on Thursday will reduce the income of many superannuitants who have fled other risky investments in favour of banks.

Superannuitant Ian Anderson says the elderly face the dilemma of staying with banks and losing income, or facing the wider investment market, where many have lost their savings.

Mr Anderson says the elderly seek short-term investments and those with cash will be tempted to consider investment options offering better yields than banks.