Retirees to pocket coronavirus stimulus cash for a rainy day

Many retirees are saying they would prefer to save Scott Morrison’s cash injection rather than spend it.

Dee Friend bowls one up before John McDonald, Barbara Maladay and David Picknell at RSL Anzac Village in Narrabeen, Sydney. Picture: Ryan Osland

Scott Morrison’s plan to inject millions of dollars into the economy by granting one-off payments to pensioners is set to backfire, with retirees saying they would prefer to save the cash rather than spend it.

More than 6.5 million pensioners will get a $750 payment from March 31 as part of the stimulus package designed to alleviate the impact of falling consumer confidence.

However, many pensioners have indicated that they planned to use the money to boost their dwindling bank balances and offset the government’s pension deeming rates.

David Picknell, who lives at the RSL Anzac Village in the northern Sydney beachside suburb of ­Narrabeen, said while he was grateful he would be receiving the payment, he had no intention of rushing out to spend it.

“We’ve all been losing money for so long because the deeming rate has been above what we’ve been getting, so we’ll be able to ­replenish our accounts,” the 82-year-old said.

Fellow resident Dee Friend, 87, agreed, saying the cash injection came as a welcome respite for many pensioners struggling to make ends meet and that it was simply too valuable to spend ­frivolously.

Seventy-eight of Australia’s 155 coronavirus cases are in NSW, with people over the age of 60 at the most risk of developing a ­severe case of COVID-19.

Given the potential risk of an outbreak in retirement communities, precautions at the Anzac ­Village have been amplified to prevent the spread of germs.

“We’ve been very cautious about it here in the centre, and we’re very well aware that this is only the start. In a month’s time it will be a different story, and winter hasn’t arrived yet,” John McDonald, 92, said.

“With the flu comes problems, particularly in our age group.”

The pensioners said they were doing their best to ­ensure the pathogen did not have an adverse affect on their lives — and would continue to enjoy social activities such as regular lawn bowls ­sessions.

“We just keep listening to the radio and the television, which has kept us well covered,” Ms Friend said.