A large number of Australians would struggle financially if they lost their job despite interest rates being at a record low.
House rents in every capital city, except Melbourne, have risen during the past year while the banks are starting to increase their fixed mortgage rates, sparking fears of loan stress from 2023.
With living costs rising again, 42 per cent of Australians are living pay cheque to pay cheque, an online Finder survey of 14,544 consumers found.
That equated to 7million Australian adults who were struggling financially.
Alarmingly, little more than a third - or 36 per cent - could live off their savings for four months if they suddenly lost their job.
Mortgage Business
Bank completes merger with credit union By Annie Kane 04 May 2021
A mutual bank has welcomed 3,000 new members after completing its merger with a credit co-operative.
Firefighters Mutual Bank, a division of Teachers Mutual Bank Ltd, has welcomed the new members after finalising the data transfer to formalise its merger with Firefighters Credit Co-operative Ltd.
All of the former Firefighters Credit Co-operative members are therefore now part of Firefighters Mutual Bank and have access to its range of products and services.
This includes a wider range than was available under the co-operative, including the ability to apply for fixed rate loans and credit cards, access to a mobile banking app, free and unlimited ATM withdrawals, and access to its new payments platform (NPP).
The Australian Securities and Investments Commission needs to maintain its litigatory focus on protecting consumers, rather than bow unreasonably to any government pressure for less regulatory red tape.
Retirees should splash on themselves, and save the economy
There is a boost to the economy if cautious retirees could be encouraged to open their savings wallets more often.
Jeremy Cooper and David Knox
May 3, 2021 – 1.55pm
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One of the observations of the recent Retirement Income Review was that it would be good for retirees to save less and spend more in retirement.
The final report talked about a more efficient use of retirement savings and better outcomes for older Australians, but it really meant more spending, less saving, leading to a better standard of living in retirement.
Life’s a beach: in reality, retirees are in the habit of underspending.
For-profit super funds in the gun over high admin fees
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For-profit superannuation funds will need to keep a tight rein on administration fees that are far steeper than their non-profit rivals or risk sliding down performance rankings designed to help consumers choose where to put their retirement savings.
The inclusion of administration fees in the new superannuation performance test will disproportionately challenge retail superannuation funds, according to an analysis by
The Australian Financial Review of the prudential regulatorâs latest superannuation heat map.
The superannuation industry is concerned about reforms giving the government power over spending decisions.Â
Louie Douvis