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I’m not sure why the preference for cash. I don’t have that preference, so I don’t understand it.

Giving it a couple of minutes thoughts and making some wild arse guesses, maybe the older generation who are wealthy, experienced the GFC and didn’t like it, have less ability to return to work if they experience another loss etc so prefer cash. The younger generation who would be more inclined to be equity holders can’t balance out the cash on an aggregate basis by buying equities because they are stretched to the max paying for expensive housing, HEC’s, their own super and high taxes to fund current retirees who weren’t self-funded.

Baby boomer wealth in retirement is not taxed so there is no redistribution benefit and they seem to be conservatively invested so there is little stimulation for the economy from their investment activities. It’s an idle pool that needs to get circulating one way or another.

Younger generations borrowing given their other commitments is about tapped out as an economic driver. Its time for savers (and the RBA seems to be forcing their hand) to put their money to productive use rather than just in deposits and rely on borrower to make the investments.

Listen to what Phillip Lowe says when he acknowledges all the retirees that write to him daily about not being able to live off their bank savings anymore. It’s basically sorry – but tough.