POWERED BY MOMENTUM MEDIA
Govt should consider retirement investment bonds
Many retirees will have to cash out of investments, at a major loss, to make ends meet as a result of the COVID-19 epidemic and retirement investment bonds could help, according to the Association of Independent Retirees.
The association’s president, Wayne Strandquist, said investments in Australian and overseas shares held by retirees had fallen significantly as sharemarkets around the world plunged due to the virus and the Russia-Saudi Arabia oil dispute.
“It is likely that as a result of the drought, bushfires, floods and the recent coronavirus stimulus package, the Australian Government will need to borrow money to inject into the economy and cover unbudgeted expenditure,” he said.
“To assist this funding, the Association of Independent Retirees suggests the Government consider issuing special retirement investment bonds. These bonds would only be available to retirees and have an interest rate marginally below the interest rate of the pensions loan scheme. This would provide retirees funding their own retirement a return with minimal risk.
“Retirees who partly or fully self-fund their retirement are reeling from the triple whammy of reduced interest rates, the savage fall in share prices and the unintended travel costs.”
Strandquist noted that retirees on overseas holidays looking to get home would also incurred extra costs as the Australian dollar fell.
Recommended for you
Michael Lovett, who left the investment firm just three months after launching its Vanguard Super offering, has taken up a chief executive role at an Australian asset manager.
The Central Bank of Ireland has granted the approval of Equity Trustees’ exit from its Irish operations, with the transaction expected to be complete on 30 April.
Super returns continued to climb in March, raising hopes of delivering double-digit returns by June depending on the performance of this next quarter.
The dedicated super fund for emergency services and Victorian government employees is under fire for unpaid entitlements to transport employees, which could exceed $40 million.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Spire Oaktree Opportunities XI First Close USD
73.88 3 y p.a(%)
2
Hills International
63.66 3 y p.a(%)
3
Acadian Global Equity Long Short Class A
36.33 3 y p.a(%)
4
CFS FC Acadian Global Equity Long Short
35.96 3 y p.a(%)
5
DomaCom 4/27 Crombie Avenue Bundall QLD 4217 Australia
32.23 3 y p.a(%)
Add new comment