Tuesday, 23 February 2010

During the financial crisis, spare a thought for (7th Oct 2008)

The self funded retirees.

They would have seen their super funds diminishing before their eyes.

Their cash investments are now being whittled away with the decrease in interest rates (Who would have predicted such an amazing drop yesterday!)

All round living costs increasing daily.

Yes most of them have paid off their mortgages but they still have to live. The pension needs to be increased but how many pensioners are actually able to claim a full aged pension?

Imagine being in Iceland and logging on to your internet banking today and finding out that no transactions are allowed to take place because all assetts have been frozen? If my bank decided to freeze all of it’s depositors assetts, all it would get would be my mortgage account which in my eyes is still way too high. A pensioner with ‘money in the bank’ would have to be shitting themselves in Iceland today.

The Husband jokingly says that if we don’t clear our mortgage we will be reduced to eating dog food when we are elderly. I always reply that lentils are cheaper than dog food. I really hope that no elderly person will be facing that choice in the future.

Now for those of you who like pretty pictures and graphs, check this out

Financial Crisis in graphics from the BBC news

1 comment:

TheCrone said...

1.Goingalittlebitferal Says:

October 7th, 2008 at 11:12 pm e

I love your blog L, but sometimes it just scares me stupid. Am off to bury my head in the sand!

2.Stewart Says:

October 7th, 2008 at 11:47 pm e

I don’t think things are so bad. A much as I can remember this has been going on ever since there have been banks and a stock market. It’s all swings and merry-go-rounds.
And with a supposed 22 billion surplus the Government has plenty to play with if the economy needs priming.
My thoughts anyway.
BTW having said that I’m glad I don’t live in the USA but then I wouldn’t have voted for Bush either.
Instead of reading between the lines on that last comment lets just say that yes I blame him and what I perceive as his incompetence.

3.admin Says:

October 7th, 2008 at 11:54 pm e

I think that here in Australia we may just get through this with our heads above water. However there are a lot of British pensioners who used icebank who can no longer access their funds. In fact they have only been guaranteed 50 000 pounds of their savings and will have to wait in a queue to see if they can get any more of their money back.

This is after the UK bank Northern Rock collapsed in September and a few more smaller ‘banks’ also went to the wall.

Let’s hope that Australia continues to be the ‘lucky country’ she has been in the past.

And GALBF, sorry to scare you babe

4.Simply.Belinda Says:

October 9th, 2008 at 3:28 am e

I can only watch and see how all this pans out but I do have the utmost sympathy for self funded retires as well as those approaching retirement watching their super slip through their fingers.

I really don’t know where this is going but I have to admit to being paranoid enough that I am going to pull my money back to home soil banks. Our higher interest online only banking service is of European origin so tonight that money is being moved back to Aussie Banks. Is it any safer here… absolutely not but at least I have to option to riot on their doorstep if its and Aussie Bank.

Kind Regards
Belinda

5.frosty Says:

October 9th, 2008 at 6:44 pm e

While I absolutely agree about the hardship aged pensioners and self funded retirees are facing please dont forget that disabled pensioners and especially those couples where one is a Carer are in a situation that can be even worse !

The aged had a full working life to save and pay off their mortgage whereas those who whose working life is suddenly cut short by illness are literally caugh short !

and then if you need disabled aids you are constantly ripped off by greedy companies

sorry off my soapbox now

frosty

6.admin Says:

October 9th, 2008 at 6:49 pm e

Thank you so much for posting that very important reminder Frosty! I agree with you wholeheartedly and I can’t imagine how hard things are for low fixed income disability recipients.