Retirees savaged by plunging interest rates
Rock-bottom interest rates and rising prices are leaving some retirees up to $50,000 a year worse off than they were a few years ago.
And broker Chris Timms of Craigs Investment Partners warns it could get worse before it gets better.
"Back in 2008 if you had $1 million in the bank on a six-month term deposit you were probably getting interest of around 8.48%, which gave you a gross income of just over $84,000.
"But today you're only getting 4.38%, which means you're getting $40,000 a year less. Factor in rising prices and the gap is more like $50,000."