Why Australians are hoarding $250 billion in savings, despite pleas from politicians to spend

Australians are said to be hoarding some $250 billion in household savings, despite pleas from politicians of all stripes to spend and help the economy.

Neil Mitchell says he thinks the reasons are obvious.

“I don’t think the politicians understand,” he said on Tuesday.

“I don’t think people are willing to spend because they’re nervous about the future.

“People are worried about the cost of living.”

Chris Andrews is the Chief Investment Officer at La Trobe Financial Group and said Neil Mitchell had nailed it.

He said the economic impacts of COVID-19, the war in Ukraine and growing concerns about inflation were all playing a part.

“Everywhere people look at the moment, they’re seeing reasons to be uncertain,” he said.

Press PLAY below to hear him explain more

Picture: Getty iStock