Why interest rate cuts aren’t good news for everyone
There are calls for pensioner deeming rates to be adjusted as interest rates continue to fall.
Deeming rates presume a financial investment is earning a certain rate of income even if they’re not. The rate has not changed in four years.
Jane Marwick spoke to both the Shadow Minister for Social Services Linda Burney and the Acting President of the Association of Independent Retirees Wayne Strandquist, about the impact this is having on pensioners.
They believe the Government is short-changing pensioners, via the deeming rate, as it assumes they are earning 3.25% on their savings. It’s no where near that. As a result some people have their pensions docked.
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