What's on your wish list?

We all have our eyes on something. Maybe it’s a new car or a gadget or a gift we’d like to buy. Perhaps travel is on the horizon. Or it could be something more mundane but necessary. 

For most of us, that means having to save – which is a little more challenging when we’re no longer earning a regular wage. 

Let's explore the common items and events we’re most likely to save for and why a term deposit could be a smart strategy to meet these goals. 

• Healthcare and medical expenses. Health costs are one of the biggest financial concerns for seniors. Even with Medicare and private health insurance, there can still be considerable out-of-pocket expenses for medications, treatments, or surgeries. Saving in advance for potential medical costs provides peace of mind and ensures timely access to necessary care. 

• Home modifications and maintenance. Ageing in place is a priority for many seniors. As we get older, our homes may need modifications to improve accessibility or safety, such as adding ramps, grab bars, or stairlifts. Regular home maintenance and repairs, from fixing roofs to updating plumbing, can also be costly. By setting money aside for home-related expenses, seniors can maintain their independence and comfort. 

• Family support. Many older Australians provide financial support to their children or grandchildren, whether it’s helping with education costs, buying a first home, or assisting during times of hardship. Having savings earmarked for these contributions allows us to help our loved ones without jeopardising our own financial security. 

• Travel and leisure. After decades of work, many retirees look forward to travelling or pursuing hobbies. Whether it’s a once-in-a-lifetime overseas trip or regular visits to family in different parts of the country, these experiences require careful financial planning. 

• Aged care and living expenses. As seniors age, some may need to transition into aged care facilities or assisted living. This can be a significant financial undertaking, with costs covering accommodation, daily care, and medical services. Setting aside funds early for future aged care needs may ensure seniors can access the best possible services when needed. 

Given the importance of saving for these major life events, choosing the right savings strategy is crucial. One option worth considering is a term deposit. 

Here’s why a term deposit could be an ideal choice for you: 

• Guaranteed returns. A term deposit offers a fixed interest rate for a set period, providing guaranteed returns on your investment. This predictability can be reassuring, especially for seniors who may prefer a low-risk savings option that protects their capital. 

• Safety and security. Term deposits with Australian banks and financial institutions are generally considered a safe way to invest, as they are protected by the government’s Financial Claims Scheme for amounts up to $250,000 per account holder per institution. This ensures that your hard-earned savings are safeguarded. 

• No temptation to spend early. A key feature of term deposits is that your funds are locked in for the term’s duration, whether it’s three months, a year, or five years. This can prevent the temptation to dip into your savings prematurely, helping you stay on track to reach your financial goals. 

• Competitive interest rates. Term deposits often offer better rates than standard savings accounts. With many financial institutions providing flexible options, you can choose a term length that aligns with your savings goals, maximising your returns while keeping your money secure. 

Whether you’re saving for healthcare costs, home modifications, family support, travel, or future living arrangements, financial planning is essential. 

By considering a term deposit, you can secure your savings with the peace of mind that comes from guaranteed returns and the protection of your capital.