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| Media release 28 December 2008 |
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| RETIREES' CHRISTMAS BONUSES COULD END UP UNDER THE MATTRESS DUE TO FINANCIAL FEARS FOR 2009 |
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| Sydney, 28th December 2008: The Federal Government's Christmas bonus is welcome relief for the 40 percent of Australian retirees and semi-retirees with financial worries, the latest Citibank Retirement Index and Australian Wealth Report has found. |
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| The Citibank Retirement Index and Australian Wealth report was released today and found Australian retirees are doing it tough and are making cutbacks of at least $33 per month. Women are particularly vulnerable, having cut back on discretionary spending by almost $50 per month. |
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| According to Tania Browne, Investment Consultant & Advice Coach, Citibank, the global financial crisis has clearly taken its toll on the purse strings of Australian retirees, with significant cutbacks being made across the board compared to last year.
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| "In the last 12 months we have seen the confidence of our senior Australians decline significantly. Our research shows that they are concerned, and that level of concern is spilling over into their behaviour and how they're spending their money. They're putting it away for the expected drier times ahead," Ms Browne said. |
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| It's also alarming that about one in three - 35 percent - of today's semi-retirees and retirees aren't sure their money will last the distance. Clearly this level of uncertainty and concern will have implications for how this group will behave and spend in the coming year. |
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| "With these figures in mind it's likely that our retirees will continue their belt tightening ways and hold on to their Christmas bonuses, saving rather than spending as the Government is hoping they will in order to stimulate the economy. With approximately four million Australian retirees eligible for part of the $10.4 billion stimulus package, this could mean millions being put away for a rainy day instead of lubricating the tills this sales season." |
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Spending Category |
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Average monthly spend - 2008 |
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Average monthly spend - 2007 |
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Difference per month |
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Essentials |
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Clothes |
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38.8 |
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46.3 |
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|
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7.5 |
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Holidays |
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70.4 |
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82.9 |
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|
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12.5 |
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S & I |
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55.8 |
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|
|
69 |
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|
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13.2 |
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Eating out |
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45.7 |
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|
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58.5 |
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|
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12.8 |
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Telephone |
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79.3 |
|
|
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75.1 |
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|
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-4.2 |
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Telephone |
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123.9 |
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|
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114.3 |
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-9.6 |
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Entertainment |
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38.6 |
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50.8 |
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12.2 |
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Utilities |
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118.8 |
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110.2 |
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-8.6 |
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DIY |
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34.5 |
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43.4 |
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8.9 |
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Groceries |
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271.1 |
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272.9 |
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1.8 |
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| Source: Newspoll Citibank Retirement Index Confidence scores from 2005 - 2008. This Index tracks the number of retirees and semi- retirees aged 55 years or more who are confident their savings will last them through retirement. |
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| Full report: Citibank Retirement Index and Australian Wealth Report 2008 |
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| Media enquiries: |
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| Erin Campbell: T: (02) 8225 1658 M: 0438 285 152 leila.dean@citigroup.com |
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| Kristen Kaus : T: (02) 8225 1631 M: 0421 380 773 kristen.kaus@citi.com |
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Notes to editors:
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| Research methodology |
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| MEDIA RELEASE |
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- Research conducted by Newspoll in June 2008. The research was conducted nationally among 404 respondents aged 55 years and over who are semi or fully retired.
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Citi, the leading global financial services company, has some 200 million customer accounts and does business in more than 100 countries, providing consumers, corporations, governments and institutions with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, securities brokerage, and wealth management. Citi's major brand names include Citibank, CitiFinancial, Primerica, Smith Barney, Banamex, and Nikko. Additional information may be found at www.citigroup.com or www.citi.com |
