TERM deposit rates are now lower than the annual rate of inflation. This means you’re actually losing money by keeping your savings in term deposits.
The loss is not so noticeable because you will get your deposit back plus some interest. But as the rate of inflation is higher than the interest rate, it means the buying power of term deposit plus interest is less.
At the same time, the share market is volatile, which is bad news for anyone with superannuation or other equity investments.
It is very likely the market will recover eventually, but while it’s in the doldrums, what do you do?
Check out lifetime annuities is what you do.
Did you know that lifetime annuities pay an indexed income until the day you die?
Did you know that if you buy a lifetime annuity, Centrelink only assesses 60 per cent of your assets? This means you get a higher Age Pension. Or it means that, if you’re a self-funded retiree, you will all of a sudden find you qualify for a part-pension.
The return is higher than what you get on a term deposit and comparable with the dividend on a blue-chip stock.
It’s worth checking out if this is something that would suit you. To do that properly, you will need to see a financial planner.