'Out of touch': Aussies respond to Woolworths special offers

Woolworths latest discount campaign misses the mark, first home buyer myth busted, and Tax Office slams fake news on super. Here are five things you may have missed this week.

Woolies says price cuts could slash $780 from annual grocery bills

This week saw supermarket giant Woolworths lower the shelf price of almost 400 products across its home brand range as well as branded products.

Woolies claims the shelf price of these products will fall by an average of 10%.

Woolworths Group CEO Amanda Bardwell says, "Customers consistently tell us they need more value from their shop, and that they expect us to do more to help."

Bardwell acknowledges that "Individually, each lower shelf price might not seem like a dramatic difference, but they will add up to real savings."

Woolies estimates families spending $150 on their weekly shop can now save around $15 each week on groceries.

That works out to an annual saving of about $780.

But the discounts are too little, too late according to online comments.

"Are they seriously expecting us to fall for another 'Down Down' or 'Prices Dropped' marketing crap again?" wrote Reddit user Rebound44. "Drop the price of products that have risen by 30-40% over the past five years by 10%. But now they won't be given promotional pricing for the next seven months, so unless you weren't already shopping for specials, overall we'll end up paying more?"

Another user said the announcement showed how out of touch the supermarket chain is.

"Who is spending $150 a week on groceries as a family? They've reiterated how out of touch they are, once again."

A third was disappointed with the promised discounts.

"I just had a look at their 'sneak peek'. Thanks Woolworths I'm sure the 10-50c discounts are totally going to slash my groceries bill."

First home buyer myth busted

Property prices may be hitting new highs, but that hasn't stopped first home buyers getting into a place of their own.

Mortgage Choice data shows a 5.6% jump in loans to first home buyers in the March quarter.

Contrary to popular belief, most first home buyers aged 18-28, don't rely on a handout from mum and dad.

The vast majority are getting into the market on their own steam:

• 74% used personal savings to grow a deposit.
• 29% borrowed their deposit
• 29% relied on the First Home Super Saver scheme
• 25% tapped into the First Home Guarantee Scheme
• 22% received a cash gift from family members
• 16% sold shares to buy a home
• 5% sold crypto to build a deposit.

The extent to which first home buyers need a helping hand from family can hinge on where they buy.

Mortgage Choice CEO Anthony Waldron, says, "Our brokers tell us that many first home buyers can't afford to buy in Sydney without a cash gift, and those gifts range in value from $10,000 to as much as $500,000."

Tax Office warns about fake news on super

The Australian Taxation Office (ATO) has slammed the growing number of dodgy websites spruiking fake news about changes to superannuation preservation and withdrawal rules supposedly starting from June 1.

Fact: The maximum preservation age (the age when you can access your super savings on retirement) is 60 for anyone born from July 1, 1964.

This has been confirmed by ATO Deputy Commissioner Emma Rosenzweig.

If you come across claims that the preservation age is set to rise, or lump sum withdrawals will be limited to 50% of your super balance, don't believe it.

"This is classic fake news," says Rosenzweig.

"Always consider the source of information you see, and if in doubt go to trusted sources such as the ATO website, your super fund website, your registered tax agent or licensed financial adviser."

Rosenzweig cautions, "Think twice before acting on information heard from third-party sources, including non-official websites or on social media."

How do your savings shape up?

Even wondered how your savings stack up for your age?

Westpac has shared customer data showing how much Aussies of the same age have in their Westpac savings accounts.

The figures differ widely depending on whether you look at average versus median savings.

Among 35-44 year-olds, for example, average savings total $29,769 while the median is a far lower $811.

As Westpac points out, the median (the middle value when the numbers are arranged from smallest to largest) can provide a more accurate picture as averages can be distorted by very large or very small numbers.

The long(er) road to retirement for small business owners

If you run a small business, don't pin your hopes on an early retirement.

Nearly half of Australia's small business owners are aged over 50.

Yet close to one in two expect to be slogging away at the coal face long after they turn 67.

Part of the problem, according to research from NAB Private Wealth, is that adult children are no longer interested in taking up the reins of a small enterprise.

Less than two in five small business owners anticipate a family member will step up to the plate when they retire. One in four businesses may have to shut their doors for good.

NAB's Michael Saadie explains, "For generations, small business owners expected family members to take over, but that reality is shifting, leaving many unprepared for retirement."

The result is that retirement can end up looking vastly different from expectations.

The key is for small business owners to start planning early to find alternative solutions to fund retirement.

"By building out comprehensive wealth transfer strategies, business owners can achieve financial security and leave a lasting legacy for future generations," says Saadie.

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