Older Australians urged to rein in spending amid high interest rates

Older people are being urged to cut back spending as fears of another interest rate rise grow.

The cash rate currently sits 4.35 per cent, with the Reserve Bank of Australia set to meet again on December 5 to consider whether to hike interest rates again.

Economics writer at The Age and Sydney Morning Herald Rachel Clun says while people under the age of 40 have noticeably cut back spending, older people are still spending relatively freely and should consider reining in discretionary spending.

Click PLAY to hear why older people are being urged to cut back spending

“The cost of living pressures aren’t affecting all of us equally,” she told Neil Mitchell on 3AW Mornings.

“By continuing to spend, you’re not just causing inflation to stay high, you’re also potentially harming the ability of your children and grandchildren to afford the basic necessities.”