The Reserve Bank has moved on official interest rates for the first time in almost three years cutting the cash rate by 0.25% to a new historic low of just 1.25%.

It’s welcome news to homeowners, saving about $60-a-month on the average $400,000 mortgage and there may be more on the way with some economists predicting two more cuts in the next 12 months.

It’s not such great news though for those who rely on their savings in retirement.

Paul Versteege from the Combined Pensioners & Superannuants Association tells Mark it’s going to make it very hard for retirees already struggling to make ends meet.

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