Although the savings level is the highest it has ever been since 1986, it still doesn’t change the fact that people still need to plan better for retirement. People are saving slightly more, but they are also living longer.
Essendon, VIC, Australia (PRWEB UK) 19 December 2012
According to Reuters, the Australian Bureau of Statistics (ABS) said that it might have underestimated how much Australians have in their savings accounts. The ABS revised up their savings estimates for the years 2010-2011 and 2011-2012.
The Australian Bureau of Statistics previously estimated that Australia’s ratio of household savings to disposable income is 9.3 per cent for the year 2011-2012. Now it is revising that estimate up to 10.8 per cent.
This is the highest level of savings since 1986 and comes after the heels of CPA Australia’s warning that Australians were not saving enough for retirement. In fact, the organisation warned of a retirement savings disaster for the country.
Mercury Wealth, a financial planning firm based in Melbourne, gives its perspective on this matter. “Although the savings level is the highest it has ever been since 1986, it still doesn’t change the fact that people still need to plan better for retirement. People are saving slightly more, but they are also living longer. The question is: are they saving enough to cover their longer life?” said Andrew Drieschner, Owner of Mercury Wealth.
The Australian Bureau of Statistics has also revised up their previous savings estimate of the year 2010-2011 from 9.6 per cent to 10.7 per cent.
Retailers will want people to start spending again, and this could prompt them to lobby for national interest rate cuts in the coming future.
“There is this opposing force that makes it hard for people to keep their savings level. Once consumers start to save more, the retailers will feel the pinch in their sales numbers and start to push for rate cuts and incentivise shoppers with special deals. This makes it important for people to develop discipline against jumping at a seemingly great deal. Part of developing this discipline lies in having clear priorities when it comes to spending your money,” said Mr. Drieschner.
Australians who want to plan their finances better can contact Mercury Wealth Management.
About Mercury Wealth Management
Andrew Drieschner and Dale Brilley run Mercury Wealth Management. Andrew specialises in wealth management and Self-Managed Superannuation funds. He has over 11 years of experience as a financial adviser, and is an expert at advising clients on their wealth accumulation. Dale has over six years of experience in Financial Planning, and has experience in all facets of financial planning. He tailors his advice to clients’ beliefs and priorities. This allows him to develop strong relationships with his clients.
Go to http://www.mercurywealth.com.au/ to reach Andrew or Dale.