Australians look to boost savings in 2011
Most Australians have resolved to make 2011 the year of boosting the bank balance, according to a national survey.
Conducted by brokerage Loan Market Group, the poll asked “What’s your financial New Year’s resolution?” and found 76 per cent of respondents wanted to increase their savings.
Loan Market chief operating officer Dean Rushton said the option to boost savings was particularly popular among younger respondents, with 84 per cent of 18 to 25 year olds wanting to bolster their bank balances.
“Many Australians are hoping for some financial stability this year after some economic challenges during 2010 including four rises in official interest rates by the Reserve Bank of Australia,” he said.
“That desire for calmer economic waters is reflected in people recognising the need to build up their savings.
Mr Rushton said the mood for economic stability would be rocked if the RBA decided to lift the cash rate from its present level of 4.75 per cent when it deliberates for the first time this year on February 1.
“We are hoping the RBA leaves rates on hold for some months as the last quarter percentage point rise in November, 2010, was unnecessary and only served to knock the wind out of the consumer confidence sails,” he said.
Of the 598 respondents, Loan Market Group also found that 14 per cent of respondents saw refinancing the mortgage or consolidating credit card debt as their financial priority for the year.