Older Australians urged to stay calm over investment savings
Older Australians who have lost access to savings following moves by fund managers Perpetual, AXA, Australian Unity and Challenger to freeze investor withdrawals, are being urged to stay calm, by Government and seniors’ organisations.
The freeze comes after the Government’s unlimited guarantee on Australian bank deposits, announced last week, prompted a flood of withdrawals from mortgage funds and foreign owned banks.
National Seniors Australia chief executive, Michael O’Neill, said that with income streams remaining unaffected, seniors with investments in these mortgage funds should try to remain calm.
“What we’re seeing is sentiment driven alarm. At this point, it’s vital to hold steady and have faith that the national Government will soon provide an effective policy response,” O’Neill said.
“Investors should understand that, despite the freeze, they will continue to receive their regular income streams and that their savings aren’t under threat; they just can’t access deposits in those funds at the moment.”
Anyone worried about their funds should contact their financial advisor.
