Pensioners in pain
Every time the Reserve Bank of Australia cuts interest rates, we hear a cheer from mortgage holders, and a despondent sigh from retirees and pensioners. Mortgage holders clearly benefit from reduction in the interest rate calculation on their 20 something year mortgage obligation. But for retirees and pensioners living on fixed incomes, it means less spending power. This means they think twice about taking the grand kids to the movies or meeting a friend for a coffee, and for some, they actually skip meals or cut off power. It seems unfair for a generation that always saved and ‘built a nation’.