US-China trade war turmoil: Australian retirees at risk says Costello

Australia’s former and trusted Treasurer has warned that Aussie retirees could lose their life savings if the US-China trade war escalates any further.

Peter Costello told 3AW Morning’s Neil Mitchell that retirees could see their savings eroded by the crisis.

“If the stock market has a substantial fall, yes retirees are at risk,” said Costello.

“Either directly, or through their super funds, they are invested in the stock market.

“It’s not a good situation at the moment, this trade war between the US and China – the worlds two greatest economies – will effect the global economy and our stock market.

“China is our largest trading partner and the United States is our military ally.”

President Trump has declared China a ‘currency manipulator’ and there are fears this new phase could produce much wider effects than those we have seen to date.

Retirees have already taken a hit with interest rates and Costello says the markets are not showing any signs of improving.

“From an Australian point of view, a negotiated settlement needs to happen between the two and a robust one at that,” Costello said.

Click PLAY to hear more from Peter Costello on the economic turmoil