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New research has revealed that baby boomers are the least likely to take a proactive approach when it comes to their savings.
According to the RaboDirect Financial Health Barometer 2015, nearly one in three baby boomers are not making the most of opportunities to maximise their savings, compared to 14 per cent of Gen Y.
The data showed that just 27 per cent of baby boomers have their savings in a transaction account, while 21 per cent stated that they don’t know the interest rate they are getting from their main savings account.
Fifty-three per cent said that they believe they will run out of money and need the aged pension in retirement.
The research also revealed that one in three Gen Y respondents said that their finances keep them up at night, while 48 per cent said they have a long-term financial plan.
In comparison, only 11 per cent of baby boomers said that their finances keep them up at night, while 38 per cent said they have a long-term financial plan.
“Our research indicates it’s the younger generations that are actively seeking saving methods that allow them to stay in control and feel financially stable,” Rabobank Australia and New Zealand Group head of research and analytics Glenn Wealands said.
“However, we would encourage baby boomers to maximise their savings by taking steps such as opening an account earning a high interest rate and checking their accounts on a regular basis to help achieve their financial goals.”
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