Rate rise not all bad news
By HELEN JACK email@example.com INDEPENDENT retiree, Joan Kille, knows the struggle of paying a mortgage and raising a family at the same time. So even though yesterday's interest rate rise marginally increases her income on her savings she still has empathy for those young families with big mortgages.
"I got a pleasant surprise when I went to the bank today," Mrs Kille said.
"It still doesn't make a huge difference to my income but it will help to offset rising grocery prices."
Mrs Kille is part of that large section of our community who actually benefit from interest rate rises: Those living on the interest from their savings and investments. But Mrs Kille said any positive affect of the interest rate rise would only be short lived.
"Everything is going up in price so quickly," she said. "As soon as we get an interest rate rise we get a rise in prices.
"It's like a dog chasing its tail. "I do feel for younger people living in the cities who are paying a mortgage and then having to shop for their young families.
"I think how fortunate I have been to live in the country when my family was young and having my groceries delivered."
NSW Independent Retirees Association Far North Coast branch president Betty Doyle said the interest rate rise would mainly affect those retirees paying mortgages.
"It will still affect those who are paying off investment properties because they will still have only a limited income on which to survive," she said.
"Hopefully retirees with investment properties won't have large loans because they will have money behind them.
"But some retirees may shy off buying an investment property because of the rise."
Mrs Doyle said there were other issues which over-shadowed interest rate rises.
"Rising land values affect retirees because council rates are calculated according to land value," she said.
"I retired to Evans Head with my husband nearly 20 years ago and our rates have gone up by 600 per cent in that time."
Mrs Doyle said branch members were not worried as much about interest rates as inequitable provisions by state and federal governments between pensioners and independent retirees.
"We have nothing against pensioners because they are entitled to what they receive," she said. "But we feel that people who provide for their own retirement should get concessional benefits too because we are saving the government money."