Provision Newsletter

It’s important to prepare for unexpected illness that could throw your retirement plans off course.

When you close your eyes and think about retirement, what comes into your mind?

Lounging on a pristine beach in the Whitsundays? Enjoying a croissant in a café on the Champs Elysees? Kitesurfing on the bay?

If you’re approaching the finish line, chances are that you’re getting proactive and eagerly preparing for life after work, with holidays, projects, hobbies and activities to fill your days of freedom.

Whether it’s new destinations, new hobbies or new experiences, your dreams need funding.

By working hard, investing wisely and taking full advantage of any government tax breaks along the way, you’ll give yourself every chance of making your dream retirement a reality.

But along the way you’ll need to think about planning for the unplanned in retirement.

Spending needs can fluctuate in retirement

Your spending is unlikely to stay the same throughout retirement. For many Australians spending is U-shaped—greater when you start retirement, then reduces, then peaks again.

This is because:

• you tend to spend more when you’re healthy, active and celebrating the end of work

• your spending slows down during a consolidation period in the middle

• your spending spikes later in life as health care and aged care costs pick up.

But some people in retirement don’t experience a consolidation period, as unexpected illness takes them straight from spending on hobbies to spending on health care.

The reality of getting older means that you need to react and be prepared for unexpected hurdles. While it’s difficult to think about, health problems can throw your retirement plans off course.

And with Australian grandparents contributing the equivalent of $3.94 billion a year in childcare costs, unexpected illness can have a severe impact on your extended family too.

Claire’s story

Claire¹ works at AMP. This is her family’s story.

“My parents were all set up to enjoy their dream retirement. They were enjoying spending time with their grandchildren, they were actively pursuing new hobbies and they had an overseas trip planned.

And then everything changed when Mum was diagnosed with breast cancer. She was only 61 years old. She’s now on chemo. Meanwhile, Dad is going through a second bout of cancer at 68.

In many ways we’re lucky.

I have three brothers and sisters to help look after Mum and Dad.

My job is flexible so I can work from home once a week to help Mum with her medication and drive her to appointments.

And Mum and Dad were always prudent with their money so they have a good savings buffer as well as insurance in place.

But life has certainly changed. We’ve gone from a situation where Mum and Dad helped look after the kids twice a week to looking after them instead.

It’s a tough time and we’re pulling together as a family to help Mum and Dad get through it. But it’s certainly not the retirement we all envisaged for them.”

Planning for every stage of retirement

So what does this mean for your retirement plans?

It’s important not only to budget for the initial active period of retirement, but also for when you may need to spend more on aged care and health care.

Please contact us on |PHONE| we can guide you to.

• Find out how much you might need in retirement.

• Learn how to manage your money in retirement.

• Discover your retirement career.

And it’s not just about the money…it’s about your overall quality of life.

• What happens if your health deteriorates? You may need to think about whether you have enough health cover and life insurance.

• What happens if you lose your mobility? You may need to look at renovating your home to help you get around or even relocating to be closer to services or family.

• What happens if you become isolated? Unfortunately it’s easy to lose touch with friends after leaving the workforce so it’s important to stay connectedand active.

After a lifetime of hard work and finally reaching the finishing line, it’s tempting to go hard early and spend up big in the first few years.

But if you’re properly prepared with a sound financial buffer and a prudent retirement spending plan then it makes it easier to navigate uncharted waters.

[1] Names have been changed.

Source : AMP November 2018 

Important:

This provides general information and hasn’t taken your circumstances into account. It’s important to consider your particular circumstances before deciding what’s right for you. Although the information is from sources considered reliable, we do not guarantee that it is accurate or complete. You should not rely upon it and should seek qualified advice before making any investment decision. Except where liability under any statute cannot be excluded, we do not accept any liability (whether under contract, tort or otherwise) for any resulting loss or damage of the reader or any other person.

Any information provided by the author detailed above is separate and external to our business and our Licensee. Neither our business, nor our Licensee take any responsibility for their action or any service they provide.

Any links have been provided with permission for information purposes only and will take you to external websites, which are not connected to our company in any way. Note: Our company does not endorse and is not responsible for the accuracy of the contents/information contained within the linked site(s) accessible from this page.

Many younger Australians are joining the Financial Independence, Retire Early (FIRE) movement. Is it right for you?

When you’re starting out in the workforce and building your career, retirement can seem like a long way away.

And with the age at which you can access your super and age pension creeping up—not to mention the increasing cost of living—you might be steeling yourself for a longer working life.

The stats don’t lie—Australians are staying in the workforce for longer and any thoughts of retiring early are becoming a distant dream for many of us¹.

But there’s a growing movement of younger Australians who believe that by following the right set of rules, it’s possible to achieve early retirement.

Popularised by US-based blogger Peter Adeney, better known as Mr Money Mustache², the Financial Independence, Retire Early movement looks more closely at what makes us happy.

Changing your spending and saving habits

FIRE is all about following an extremely frugal lifestyle with the aim of retiring as early as your 40s…or even your 30s!

At the core of the FIRE philosophy is changing your attitude towards spending and saving.

But FIRE is more than just following a budget. It’s a whole-of-life movement that inspires fervent belief in its followers.

The FIRE movement encourages its followers to build up seven levels of financial safety by:

• investing in property

• investing in dividend-yielding assets

• building tax-effective super

• working part-time

• taking full advantage of social security

• looking for entrepreneurial work opportunities

• adjusting their lifestyle to live a simpler life.

When it comes to saving, every little bit counts

Like any movement, FIRE inspires some committed followers and some of the lifestyle advice can seem a little extreme—churning credit cards to access freebies, living in a truck to avoid rent and even sifting through bins outside restaurants for free food.

Now, if the thought of going without your daily latte…not to mention movie outings, fine dining and regular holidays…sounds like a living nightmare, then perhaps FIRE isn’t for you.

But if this sounds too much like hard work, don’t worry. You don’t have to be quite so committed.

You could consider making some simple changes to your daily habits to reduce your spending and boost your savings.

• Make a list of where you could cut back to reduce your waste.

• Cycle all or part of the way to work and save on transport costs.

• Shop around for the best deal on utilities like gas, electricity and water.

• Entertain at home—a monthly Netflix subscription costs less than a single movie ticket.

How to light your FIRE and retire on your terms

Once you’ve ramped up your savings, you could think about being a little more savvy with your money.

• Bring your super together into one account to avoid paying more than one set of fees.

• Look at ways to save and invest your money to increase your potential returns.

• Consider investing in property…but watch out for aggressive gearing, especially if interest rates change.

You may not retire quite as early as the more committed FIRE followers. But you may just put yourself in the box seat to retire on your own terms.

And along the way, you might find yourself reappraising your attitude towards money and happiness.

Please contact us on |PHONE| if we can be of assistance .

1 Australian Bureau of Statistics – Retirement and Retirement Intentions, Australia

2 https://www.mrmoneymustache.com/about/

Source : AMP November 2018 

Important:
This provides general information and hasn’t taken your circumstances into account.  It’s important to consider your particular circumstances before deciding what’s right for you. Although the information is from sources considered reliable, we do not guarantee that it is accurate or complete. You should not rely upon it and should seek qualified advice before making any investment decision. Except where liability under any statute cannot be excluded, we do not accept any liability (whether under contract, tort or otherwise) for any resulting loss or damage of the reader or any other person. 

Any information provided by the author detailed above is separate and external to our business and our Licensee. Neither our business, nor our Licensee take any responsibility for any action or any service provided by the author.

Any links have been provided with permission for information purposes only and will take you to external websites, which are not connected to our company in any way. Note: Our company does not endorse and is not responsible for the accuracy of the contents/information contained within the linked site(s) accessible from this page.

While nearly nine in 10 say they have a preference, less than five in 10 have discussed their wishes with their family. What about you?

According to a recent study by McCrindle, nearly 90% of Australians aged 50 and over said they’d prefer to live out their days in their own home, even though most admitted to not having given much thought to what support they’d need in order to do so¹.

We look at some of the findings that came out of the research as well as what aged care options are available, so that you might be more informed around what avenues are available to you and your loved ones.

Preparation and planning are lacking

In a national survey of more than 1,000 Aussies aged 50 and over, responses revealed the following²:

• 46% of older Aussies haven’t discussed their wishes around their future care with anyone

• 75% haven’t taken any steps to ensure they’ll receive their preferred means of future care

• Around 40% aren’t confident they or the government will be able to sufficiently fund their care needs, with only 9% having a secure financial or savings plan in place

• 30% have been involved in organising care for a parent in the past, but admit they had to make decisions quickly and with limited information.

Why conversations need to be had

Today there are more than 3.8 million Australians aged 65 and older (compared to 1.7 million 30 years ago), with that number expected to increase to 7.5 million in three decade’s time³.

Australia’s ageing population indicates that it’s not just older people who need to prepare for future aged care needs, but all Australians, who need to talk to their families, while prioritising finances and ensuring they’re informed about the services available.

In-home care the fastest growing sector

Over a ten-year period, the number of people receiving aged care in Australia grew from 189,000 to 249,000, with in-home care the fastest growing sector within the care industry, outperforming growth in residential care by five to one⁴.

Staying at home is a priority for many older Australians, with 74% indicating they’d likely use in-home care services and 82% saying they’d be prepared to pay for such services to live at home for longer⁵.

With 33% of older Aussies not aware that the government funds certain in-home care services, the research highlighted that there was a need for more awareness around aged care support⁶.

Aged care options available

More than 50% of Aussies over age 45 have previously or are currently dealing with aged care services for themselves, or on someone else’s behalf⁷, which is why considering your options in aged care earlier rather than later could provide you or a loved one with greater flexibility.

Each aged care service available in Australia has eligibility criteria and an assessment process which can be organised through the government’s My Aged Care initiative.

Keep in mind that the costs of different aged care services vary and may depend on income and assets, as assessed by the Department of Human Services or the Department of Veterans’ Affairs.

Here are some of the options:

Help in your own home

If you’re generally able to manage, but require some assistance, there are various home-care packages available that may help with things such as getting dressed, catching transport, cooking, making modifications to your home, as well as a range of other things.

Short-term help

• After-hospital (transition) care – If you’ve been in hospital but need assistance while you recover, this type of service can be provided in your own home or ‘live-in’ setting.

• Short-term restorative care – This provides a range of services to help prevent or slow down difficulties with completing everyday tasks. It aims to delay or reverse the need to enter long-term care.

• Respite care – This service provides support for you and your primary carer when your carer has other duties to attend to, or when they’re on holiday.

Residential aged care

This is where you live in full-service residences and receive ongoing care and support. If it’s the best option for you, it’s a good idea to research and visit several homes to find the right place for you.

1-6 McCrindle: Older Australians not prepared for their future age care.
7 Superannuation well placed to play a role in health and aged care funding and advice: ASFA – table

Source : AMP November 2018 

Important:
This provides general information and hasn’t taken your circumstances into account.  It’s important to consider your particular circumstances before deciding what’s right for you. Although the information is from sources considered reliable, we do not guarantee that it is accurate or complete. You should not rely upon it and should seek qualified advice before making any investment decision. Except where liability under any statute cannot be excluded, we do not accept any liability (whether under contract, tort or otherwise) for any resulting loss or damage of the reader or any other person. 

Any information provided by the author detailed above is separate and external to our business and our Licensee. Neither our business, nor our Licensee take any responsibility for any action or any service provided by the author.

Any links have been provided with permission for information purposes only and will take you to external websites, which are not connected to our company in any way. Note: Our company does not endorse and is not responsible for the accuracy of the contents/information contained within the linked site(s) accessible from this page.

October was a bad month for shares with global shares losing 6.8% in local currency terms and Australian shares losing 6.1%. It’s possible that following top to bottom falls of 9% for global shares, 11% for Australian shares, 21% in emerging markets and 31% in Chinese shares we have now seen the low in the share market rout. Shares were due a bounce and from their October lows and Australian shares have risen around 4% since. But it’s impossible to be definitive and with the worry list around US interest rates, trade, politics, etc, there could still be another leg down. However, our view remains that recent turbulence in share markets is a correction or a mild bear market at worst (like 2015-16) rather than the start of a deep bear market like the global financial crisis. This note reviews the key recent worries for shares and why they are unlikely to be terminal.

US inflation & interest rates

The US economy is very strong as evidenced by consumer confidence at an 18-year high, unemployment at a 49-year low and strong economic growth. With spare capacity being used up wages growth is edging higher as shown in the next chart.

Source: Bloomberg, AMP Capital

Against this backdrop it makes sense for the Fed to continue the process of returning monetary policy and interest rates to something more normal. Naturally, the ongoing removal of monetary stimulus in the US creates consternation and has been periodically occurring ever since former Fed Chair Bernanke started talking about slowing or “tapering” quantitative easing in 2013. In short, investors continue to fear a return to the GFC and so any move to remove monetary support creates periodic bouts of fear. Several points are worth noting about this though. First, the Fed can afford to remain gradual in raising rates. Inflation is at the 2% target, wages growth is a long way from the 4% plus level that preceded past recessions and productivity growth is rising so this will keep growth in unit labour costs down. Meanwhile, intense competition and technological innovation are also continuing to help keep inflation constrained.

Second, on any measure US monetary policy is a long way from being tight. The Fed Funds rate is zero in real terms, it’s well below nominal growth and the yield curve is still positive.

Finally, a return to more normal interest rates is a good thing because it reflects a stronger, more normal economy.

In short, expect gradual 0.25% Fed rate hikes to continue, with the next hike coming in December, and this will cause bouts of market volatility but it’s a long way from crunching the economy in a way that would bring on a deep bear market in shares.

The US/China trade conflict

This issue has been periodically worrying markets since around March. It stepped up a notch after last month’s speech by US Vice President Mike Pence indicating that US gripes with China extend beyond trade which led many to talk of a new Cold War – the implication of which is less trade and occasional military tensions which implies lower economic growth and lower price to earnings multiples. However, it’s still not as bad as it looks.

First, so far only 12% of US imports have been subject to a tariff hike averaging 15%, which is equivalent to an average tariff hike of 1.8% across all imports. So it’s a non-event compared to 1930 which saw a 20% tariff hike on all imports.

Second, while initially the US seemed to be picking trade fights with all major countries it has since renegotiated trade agreements with South Korea and Canada/Mexico and is negotiating with Europe and Japan. This tells us Trump is not interested in trade wars with everyone and that he is not anti-trade per se but wants “fairer trade” for the US.

Third, while Trump has threatened more tariff hikes on China if it retaliates it’s noteworthy that China has not fully retaliated and has been cutting tariffs and announcing more protections for intellectual property. This may help defuse the tensions a bit.

Fourth, while Trump’s comments expressing optimism about a deal with China should be treated with scepticism as they came just before the US midterm elections, they do highlight cause for optimism that a deal will be reached eventually. At least Trump and Xi are talking and Trump’s optimistic comments ahead of the midterms effectively tells us that he is aware that the trade issue is harming the stock market and potentially the economy. The latter in turn suggests that he wants a deal well before he faces re-election in 2020. So, while it may be premature to expect a deal when Xi and Trump meet later this month, a deal is likely well ahead of the 2020 elections. With China already lowering tariffs, improving intellectual property protections and softening joint venture requirements the outlines of a deal are starting to become apparent and Chinese Vice President Wang has indicated China is ready to negotiate with the US.

The US midterm elections – no surprises

The US midterm elections saw the Democrats win control of the House and Republicans retain the Senate which was what had been indicated by the polls and betting markets. So, it provided no surprises – in contrast to Brexit and Trump’s 2016 win! While the Democrat House is likely to prevent Trump from cutting taxes any further it won’t be able wind back last year’s tax cuts, reverse Trump’s deregulation of the economy or change his trade policy. But there is some chance that Trump and the Democrats may agree on infrastructure spending. While the Democrat House will likely set up committees to investigate Trump and consider impeachment charges, it’s very unlikely to get the required 67 out of 100 senate votes to remove him from office unless he is shown to have done something really bad. All up, while there may be some skirmishes around shutdowns and debt ceilings, the midterm outcome could be positive because it means less policy uncertainty.

On average, US Presidents have lost 29 House seats in their first midterm election. Clinton lost 54 and Obama lost 63. Trump looks to have lost around 34 but only needed to lose 23 to lose control of the House so what has happened is not unusual. What’s more the Republicans look to have increased their Senate majority so it’s not all bad for Trump. More broadly, it should be noted that “divided government” is the norm in the US. Perhaps the biggest risk is that Trump takes it personally and ramps up the populism, but if he wants to get re-elected in 2020 (which he does) then he won’t want to do anything that damages the economy and amongst other things this points to cutting a deal with China and getting the tariffs removed. Since 1946 the US S&P 500 has risen in the 12 months after all midterm elections – probably because the president starts to focus on re-election and so tries to boost the economy.

Source: Bloomberg, AMP Capital

US tech stocks

Having accounted for a big chunk of US share market gains this year the US tech sector has corrected around 13%, but that still leaves it vulnerable to relatively high valuations (Nasdaq is on a PE of 42 times), sales growth slowing down for some of them and the prospect of increasing regulation. However, we have not seen anything like the tech boom euphoria of around 1999/2000 so a crash like back then is unlikely. Our base case is that the US share market will start to see a rotation from expensive tech to cheap cyclical stocks (with many trading on forward PE’s of less than ten times).

Eurozone worries – German and Italy

Fears that the Eurozone is about to blow apart causing financial mayhem and threatening global growth have been with us since the Eurozone crisis that started in 2010. Lately the fear is that populist governments will take countries out of the Euro. This started with Greece in 2015. It was an issue last year but then pro-Euro parties and candidates won in various elections. This year it’s been an issue with Italy particularly, as its populist government sought a wider budget deficit, and Germany with Angela Merkel indicating she will step down as Chancellor in 2021. In terms of Italy, there will no doubt be a conflict between the European Commission and Italy over the size of its planned budget deficit but don’t expect it to go too far as the deficit is not outlandish and German and France won’t want to embolden the Eurosceptics in Italy by pushing back too hard.

In terms of Germany, the poor performances of the governing German grand coalition parties the Christian Democratic Union (CDU), the Christian Social Union and the Social Democrat Party (SPD) at state elections do not signal a threat to the Euro. First, comments by SPD leader Nahles indicate the grand coalition is not under imminent threat. Second, Germany’s budget surplus and falling public debt indicate plenty of scope to provide fiscal stimulus, which would be positive for Germany and the Eurozone and provide an electoral boost for the grand coalition partners. Thirdly, German Euroscepticism is not on the rise. In fact, support for the Euro in Germany has risen to 83% and it was support for the pro-Euro Greens that surprised in Bavaria and Hesse, not support for the Alternative for Deutschland. Finally, a new election is unlikely as both the CDU and SPD have seen a loss of support, so they aren’t going to back an early election. So those looking for a breakup of the Euro can keep looking.

Oil prices – back down again

In early October world oil prices reached their highest since 2014 with West Texas Intermediate topping $US76/barrel with talk it was on its way to $US100 on the back of strong demand and supply threats including impending US sanctions on Iran. This in turn was adding to concerns about the impact on global economic growth and rising inflation. However, since then the oil price has fallen by nearly 19%. US sanctions on Iran have started but with little new impact as Iranian oil exports had already fallen and the US granted waivers to allow eight countries – including Japan, China, India, Taiwan and South Korea – to continuing importing Iranian oil. The Iranian export cutbacks at a time of threats to production from Venezuela and Libya leaves a now-tight global oil market at risk of higher prices, but for now the threat has receded a bit.

Source: AMP Capital 8 November 2018

Important notes: While every care has been taken in the preparation of this article, AMP Capital Investors Limited (ABN 59 001 777 591, AFSL 232497) and AMP Capital Funds Management Limited (ABN 15 159 557 721, AFSL 426455) makes no representations or warranties as to the accuracy or completeness of any statement in it including, without limitation, any forecasts. Past performance is not a reliable indicator of future performance. This article has been prepared for the purpose of providing general information, without taking account of any particular investor’s objectives, financial situation or needs. An investor should, before making any investment decisions, consider the appropriateness of the information in this article, and seek professional advice, having regard to the investor’s objectives, financial situation and needs. This article is solely for the use of the party to whom it is provided.

At its meeting today, the Board decided to leave the cash rate unchanged at 1.50 per cent.

The global economic expansion is continuing. A number of advanced economies are growing at an above-trend rate and unemployment rates are low. Growth in China has slowed a little, with the authorities easing policy while continuing to pay close attention to the risks in the financial sector. Globally, inflation remains low, although it has increased due to both higher oil prices and some lift in wages growth. A further pick-up in inflation is expected given the tight labour markets and, in the United States, the sizeable fiscal stimulus. One ongoing uncertainty regarding the global outlook stems from the direction of international trade policy in the United States.

Financial conditions in the advanced economies remain expansionary but have tightened somewhat recently. Equity prices have declined and yields on government bonds in some economies have increased, although they remain low. There has also been a broad-based appreciation of the US dollar this year. In Australia, money-market interest rates have declined recently, after increasing earlier in the year. Standard variable mortgage rates are a little higher than a few months ago and the rates charged to new borrowers for housing are generally lower than for outstanding loans.

The Australian economy is performing well. Over the past year, GDP increased by 3.4 per cent and the unemployment rate declined to 5 per cent, the lowest in six years. The forecasts for economic growth in 2018 and 2019 have been revised up a little. The central scenario is for GDP growth to average around 3½ per cent over these two years, before slowing in 2020 due to slower growth in exports of resources. Business conditions are positive and non-mining business investment is expected to increase. Higher levels of public infrastructure investment are also supporting the economy, as is growth in resource exports. One continuing source of uncertainty is the outlook for household consumption. Growth in household income remains low, debt levels are high and some asset prices have declined. The drought has led to difficult conditions in parts of the farm sector.

Australia’s terms of trade have increased over the past couple of years and have been stronger than earlier expected. This has helped boost national income. While the terms of trade are expected to decline over time, they are likely to stay at a relatively high level. The Australian dollar remains within the range that it has been in over the past two years on a trade-weighted basis, although it is currently in the lower part of that range.

The outlook for the labour market remains positive. With the economy growing above trend, a further reduction in the unemployment rate is expected to around 4¾ per cent in 2020. The vacancy rate is high and there are reports of skills shortages in some areas. Wages growth remains low, although it has picked up a little. The improvement in the economy should see some further lift in wages growth over time, although this is still expected to be a gradual process.

Inflation remains low and stable. Over the past year, CPI inflation was 1.9 per cent and, in underlying terms, inflation was 1¾ per cent. These outcomes were in line with the Bank’s expectations and were influenced by declines in some administered prices due to changes in government policies. Inflation is expected to pick up over the next couple of years, with the pick-up likely to be gradual. The central scenario is for inflation to be 2¼ per cent in 2019 and a bit higher in the following year.

Conditions in the Sydney and Melbourne housing markets have continued to ease and nationwide measures of rent inflation remain low. Growth in credit extended to owner-occupiers has eased but remains robust, while demand by investors has slowed noticeably as the dynamics of the housing market have changed. Credit conditions are tighter than they have been for some time, although mortgage rates remain low and there is strong competition for borrowers of high credit quality.

The low level of interest rates is continuing to support the Australian economy. Further progress in reducing unemployment and having inflation return to target is expected, although this progress is likely to be gradual. Taking account of the available information, the Board judged that holding the stance of monetary policy unchanged at this meeting would be consistent with sustainable growth in the economy and achieving the inflation target over time.

Source: Reserve Bank of Australia, November 2nd, 2018

Enquiries

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Reserve Bank of Australia
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Phone: +61 2 9551 9720
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Email: rbainfo@rba.gov.au

We check out the three largest contributors to household spending in Australia and where people would source additional cash if living expenses rose.

If you worked a full-time job in Australia in 1975, the average amount you would’ve earned a year was about $7,600, whereas today, that figure would be closer to $72,000¹, according to research by McCrindle.

That’s welcome news, but while we’re earning more than what we did in 1975, things are also costing us more. A loaf of bread is 10 times the price, a litre of milk is three times the price, a newspaper is 20 times the price, not to mention petrol has doubled, with house prices in some capital cities up thirtyfold².

We check out the largest contributors to household spending today and where people say they would source additional money if day-to-day expenses increased further.

Housing, food and transport

The three largest contributors to household spending in Australia have been the same for many years, according to the Australian Bureau of Statistics (ABS).

ABS figures reveal three-and-a-half decades ago the largest contributors to household spending were food (20%), transport (16%) and housing (13%), with housing now at the top of that list (20%), followed by food (17%) and transport (15%) respectively³.

A separate report by Deloitte highlighted that around 37% of Aussies were concerned about their ability to cover expenses, with more than 50% indicating that they expected to pay even more on housing and energy costs going forward⁴.

What people would do if costs rose further

When asked, if your day-to-day living expenses increased, where do you think you’d source additional money from, here was the top eight responses in a survey of Australians⁵:

1. Reduce luxury spending – 20%

2. Buy fewer groceries – 12%

3. Spend less on transport – 12%

4. Borrow money via a loan or credit card – 10%

5. Draw on savings – 5%

6. Spend less on food delivery and eating out – 5%

7. Cancel subscription services – 4%

8. Cancel streaming services – 3%.

Now that you’re aware that housing, food and transport are generally the biggest expenses for Aussie households, you may be looking at ways you could cut back and save in these areas.

If you seek further discussion please contact us on |PHONE| .

1, 2 McCrindle Research – 40 years of change: 1975 to today – table 2 and 3
3 Australian Bureau of Statistics – Households spending more on the basics – paragraph 5 and 6
4, 5 Deloitte Access Economics – ALDI household expenditure report  – page 9 and 23

Source : AMP October 2018 

Important:
This provides general information and hasn’t taken your circumstances into account.  It’s important to consider your particular circumstances before deciding what’s right for you. Although the information is from sources considered reliable, we do not guarantee that it is accurate or complete. You should not rely upon it and should seek qualified advice before making any investment decision. Except where liability under any statute cannot be excluded, we do not accept any liability (whether under contract, tort or otherwise) for any resulting loss or damage of the reader or any other person.  
Any information provided by the author detailed above is separate and external to our business and our Licensee. Neither our business, nor our Licensee take any responsibility for any action or any service provided by the author.
Any links have been provided with permission for information purposes only and will take you to external websites, which are not connected to our company in any way. Note: Our company does not endorse and is not responsible for the accuracy of the contents/information contained within the linked site(s) accessible from this page.