Safeguard your money, because the New Year’s economic forecast is bleak 33



View Profile
Managing Director of the IMF, Christine Lagarde

The International Monetary Fund (IMF) has predicted that economic growth in 2016 will be soft, and has some ideas on how governments can improve their cashflow. For the rest of us though, here are three handy tips on how to safeguard your savings in the New Year.

Managing Director of the IMF, Ms Christine Lagarde, said that rising interest rates in the United States and an economic slowdown in China will contribute to financial decline. “All of that means global growth will be disappointing and uneven in 2016”, she said. 

Ms Lagarde has advised governments in stabilised countries to support trade demand, and to adopt appropriate fiscal policies. “Most highly developed economies (except the USA and possibly Britain) will continue to need loose monetary policy, but all countries in this category should comprehensively factor spillover effects into their decision-making”.

Even amidst an economic downturn though, average Australians can protect their hard-earned cash. Here are the top three tips available for people aged over 60:

1. Pay greater attention to everyday expenses 

Writing down little expenditures (such as teas and coffees out) can reveal where your dollars go. Becoming a better manager of your own money, is the best way to protect your personal savings long-term. Understand your bill cycles and plot upcoming expenses on a calendar. These little measures can ensure there aren’t major dents to your nest-egg, no matter how the global economy performs.

2. Supplement your income with interest, not principals

An expert in financial planning for over 60s, Steve Vernon gave this advice during the most recent global recession. “My mother supplements her pension… with interest and dividend income”, he wrote. “She doesn’t touch the principal”. Indeed, even the most humble nest-egg can accrue interest over time. It’s preferable to use this interest, rather than dipping into your principal savings. Ideally this will mean that if global figures worsen, you still have money to fallback on.

3. Seek professional financial guidance

There are several financial-planning resources for people over 60, which are available free of charge. The government’s Financial Information Service phone-line and seminars can help you prepare for retirement, or better understand your pension. You can also determine your eligibility for extra benefit payments on the Human Services website, or calculate tax offsets for pensioners online. As with all financial advice, you need to speak with an expert to understand what impacts your circumstances personally.

What steps do you take to protect your financial future? Are you worried about economic slumps in 2016?

Starts at 60 Writers

The Starts at 60 writers team seek out interesting topics and write them especially for you.

  1. Interested to see what the current government do for their mates.

    2 REPLY
    • I was interested to see what the last government did for theirs. What was it? 32 luvvies from the sisterhood parachuted into government jobs by Gillard. What a corrupt and crimminal Fucktard she was. Looking forward to see her cremated. 🙂

    • I really don’t think this is an appropriate comment. You have the right to your opinion, but I strongly object to the language used.

  2. This is because interest rates will rise. The richly rich don’t want you to make too much money so they do this. It’s all about control.

    1 REPLY
    • graeme graeme please tell me how it will effect a rich person if i gott rich …i may have money in the bank he might be able to borrow that and get richer .

  3. Yea well it’s been coming and if this government don’t start putting money into construction and the housing industry it’s going to get even harder. Instead they put billions into the Murdock and Gina

    3 REPLY
    • Your comments are so ill-informed they are laughable. It’s great reading them – keep posting!

    • No need for rudeness ⤴️
      If their ilk paid the taxes they owed their would be no “dire financial predictions.”

    • bronwyn do you know how much tax these people paid of course you dont ..silly posts by stupid people who tell you they know just beyond stupid ..did you know reinhardt bankrolls our olympic team and competng.. no thougt not but you know her tax affairs …ANOTHER EVERYONE KNOWS PERSON

  4. Do you have to make an issue of this on the first day of New Year and is this going to be what I am going to read every time I go into Facebook as I was getting rather sick of all the moaning about just about everything, be positive and thankful that you get, in my opinion, a pretty good deal over thete

  5. I know I’m getting boring on this subject, but if you are feeling the pinch, or even if you are not, do a budget!

    Even if you just write down everything you spend, and what you spent it on you will be better informed.

    1 REPLY
    • Rob
      I have a little book where I record everything I spend. I pay $50 on my phone and my electricity every fortnight and add and extra $50 to my rent payment every fortnight. When Christmas comes around this means that I can go without having to pay my rent or power or phone for 6 weeks and still be ahead on payments. I am also very frugal with power usage using fans rather than aircon and heated blankets rather than heaters. This keeps my power bill down to less than $220 per quarter. I also try and put $50 per fortnight into a special account to cover things like insurance and car rego or repairs every year.

  6. I would like to have seen a suggestion for how to protect any principal if the banks decide to take unsecured deposits to bail themselves out.

    3 REPLY

Leave a Reply

Your email address will not be published. Required fields are marked *