Emergency funds flash poll delivers surprising result

Are you financially prepared for an emergency? This is what you said.

happy couple

When it comes to money matters, an overwhelming number of retirees are concerned they will outlive their savings, blaming energy costs as the biggest problem. But those long-term worries are offset by considerable wisdom among YourLifeChoices members, based on their responses to Friday’s Flashpoll, Are you prepared for a financial emergency.

An overwhelming majority of respondents indicated they had thought about possible hiccups in retirement and had set aside funds for that purpose.

A whopping 78 per cent said they had an emergency fund and 41 per cent said they had more than $20,000 in that fund. Another 18 per cent had between $10,000 and $20,000 set aside and seven per cent between $5000 and $10,000.

Sixty per cent said they believed they were prepared to deal with an unexpected expense.

About one in five (22 per cent) said they did not have an emergency fund. The main reason (seven per cent) was “I try but I constantly need to tap into my savings”. Nine per cent said they either can’t save enough or can’t afford it.

Most respondents (58 per cent) were confident they would not need to rely on public services to get through a health crisis and a big majority were staunch in their view that they would refuse to consider loans.

And in another sign that members are a wise mob, they gave a strong “no” (89 per cent) to payday loans and an even stronger “no” (93 per cent) to digital payment platforms such as Afterpay. Ninety-seven per cent said they had never resorted to platforms such as Afterpay and 67 per cent said such an option was not a good idea.

Thirty-five per cent of the poll’s 384 respondents  said they were fully self-funded retirees and 28 per cent received a part Age Pension.

Are you optimistic about your financial outlook? Is the short-term view better than the long-term?

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    COMMENTS

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    tisme
    29th Oct 2018
    11:07am
    I fear the future so much my doctor has upped my anti depressants ( that wont help fix the issue )
    Sundays
    29th Oct 2018
    1:38pm
    Tisme, places like the Salvation Army offer free financial management services. These are one on one and confidential. Would that help? There may be services to assist you which you aren’t aware of
    Joy Anne
    29th Oct 2018
    11:18am
    Tisme i agree. I have them also and getting expensive as i can't take generic and instead of paying 5.40 i paid the other day 15.50. The govt keep screwing us pensioners. Greedy bastar..
    Paddington
    29th Oct 2018
    3:00pm
    I hear you Joy Anne. We have hit the safety net but only the $5.40 comes off the cost and only $5.40 counts towards reaching the safety net in the first place. We refuse the generic as we have been unwell when taking them. I think when a doctor writes no substitutes then that should be sufficient to have the proper ones. If people try the generic but have a problem, see the doctor with the symptoms then the doctor decides, the original ones must be provided at the lower price. I am allergic to crustaceans for example. The coating and/mixing must be at fault.
    Old Geezer
    29th Oct 2018
    3:03pm
    Last prescription I bought was nearly $40 for my partner.
    Greg
    29th Oct 2018
    4:27pm
    Joy Anne - why did you pay 15.50, are the drugs no longer on the PBS, did the chemist make a mistake? If they've been taken off the PBS there is most likely a substituent that is still on the PBS. Chemists make mistakes, happened to me, they'll give you a refund.
    Old Geezer
    29th Oct 2018
    4:30pm
    I asked but no refund for me.
    Paddington
    30th Oct 2018
    10:37am
    Greg, f you refuse the generic then you have to pay the difference between the two amounts meaning the full cost and the $5.40. Many people have allergies and hence have issues with the cheap substitution.
    Julian
    30th Oct 2018
    11:28am
    Hi Paddington. Once a drug patent expires, then the manufacturing company must release the original formula. Any generic producing company must make that medication according to that compound. The only difference which you cite, and may be causing you problems, could be in the coatings stabilizers, preservatives , excipients and several other additives. The active ingredient is always the same. Other than that, it performs exactly the same function.
    Old Geezer
    29th Oct 2018
    11:18am
    What will be will be.
    Julian
    29th Oct 2018
    12:11pm
    Isn't it interesting to note that the older generation refuses to adopt afterpay...living by the old adage if you haven't got the money you can't spend it.
    KB
    29th Oct 2018
    12:18pm
    I live within a budget. Luckily I have health care card that that pays for medication and other expenses. I have private health insurance which covers operations Would love to drop health insurance but cannot due to the need of another hip operation. I have to save for the out of pocket expenses .Health care keeps spiralling out of control
    *Loloften*
    31st Oct 2018
    6:37am
    Know what u mean KB....would love to drop my $400+1/4ly single Health Insurance, can't as Eye Specialist said my eyes are just starting to show signs of cataracts. Have friends who needed cataract ops, didn't have Health Insurance, had to wait for up to 2yrs whilst vision continued to blur. $1,200+annually is a hell of lot on an OAP, have to dig into savings to keep it up....Eye Specialist said was far too soon to operate, probably not necessary for ard 5yrs! Choices....gamble on time/outcome @ minimal cost or keep paying up $1,000s for yrs to insure it?
    Anonymous
    31st Oct 2018
    10:56am
    I dropped health insurance years ago as poor value. Cataract surgery with the top specialist in Queensland and first-class care cost my partner $9000 total for both eyes - before Medicare rebate, and that's a once-off expense. You have to question whether it's really worth paying thousands every year to avoid a cost that might only equate to four or five years' contributions at most.
    KSS
    29th Oct 2018
    1:26pm
    I don't understand why this is so surprising. Older Australians are of the generation where frugality, budgeting and saving for what you want were the 'norm'.
    *Loloften*
    31st Oct 2018
    6:53am
    So true KSS - however, how long do those savings last when have a long term illness & still pay extra for Specialists/Anaethetists/Hosp admittance/treatments/tests+++whilst paying for Health Insurance. And don't get me started re Elec/Gas/Water/Rates/other Insurances+++....now paying more for all above than used to just a few yrs ago when was happily paying for 2 of us & yes, I'm frugal, no bad habits. Council Rates a rip-off, mine increased almost $200,000 in just past 2yrs for a 50yo, ever increasing dilapidation, 4bd-rm (no en-suite/pantry/mod cons) home 25kms from CBD.
    *Loloften*
    31st Oct 2018
    7:20am
    KSS - forgot to mention that my dear old home is on an ave approx 660sq block + that I Objected to huge increase in Valuation + current Council rates. Didn't know 'til then that they were calculated by a quick drive-by, every 2yrs. Was told when my CIV was finally decreased by approx $70,000 (meagre decrease in Rates but worth it, learned a lot), our home valuations/Council rates will now be estimated annually.
    Linda
    29th Oct 2018
    3:28pm
    It is the time of life for many to be very conservative with what funds they have. There are a lot of unknowns out there when it comes to going from two married in one household to one single (widowed) female who's partner had the most in super, earned the most over their lives. I don't know if there will be enough in order to keep home and hearth together. Unexpected home repairs and health is a worry. To have the small cushion, means we don't go out much, don't spend on luxuries, or entertainment beyond the phone, TV, and computer. Aging can be very expensive when medicines and treatment costs are considered.


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