Plastic surgery gives the economy a lift

Plastic surgery gives the economy a lift

Forget tough economic times; Australians will spend around $850 million on cosmetic surgery this year, research suggests.

The most common procedures include breast reduction, liposuction, rhinoplasty (nose reshaping) and eyelid surgery, according to a study by IbisWorld.

Meanwhile, demand for non-invasive cosmetic procedures has been growing at a phenomenal rate for several years, with Australians spending about $560 million last year, up 25 percent on the previous year, IbisWorld estimates.

Formal statistics on the size and growth of cosmetic surgery are difficult to obtain as records are not collected on the industry in Australia. But the Australasian College of Cosmetic Surgery used sales records for botulinum toxin, better known as by the brand names Botox and Dysport, to estimate 1.5 million jabs had been administered in about 250,000 wrinkle reduction procedures in 2009. That was a 30 percent jump on the previous year.

Dr Jeremy Hunt, a plastic surgeon in Sydney and spokesperson for the Australian Society of Plastic Surgeons told Fairfax he has seen an increase in the number of people seeking non-surgical solutions to ageing.

“If you look at the trends coming from the American Society of Plastic Surgeons (ASPS), there is certainly an increase in the number of non-surgical interventions such as Botox and the use of fillers and I think Australia is embracing those products at the same kind of rate as the United States,” he said.

In 2011 cosmetic surgery gave the US economy a lift to the tune of $10.4 billion, with Americans undergoing 13.8 million cosmetic procedures and around 5.5 million reconstructive surgeries.

ASPS data shows that women were the drivers of the cosmetic surgery industry in the US, representing 91 percent of all procedures last year. While for American men, the most commonly requested procedure was nose reshaping. But eyelid surgery, liposuction and ear surgery also made the cut.

Chins were in last year, with the number of chin augmentation surgeries rising fastest by 71 percent from 2010. However, the most common cosmetic surgery in the US in 2011 was breast augmentation, with women spending an average of $3388 on a physician consultation, ahead of nose reshaping at $4422 for the average consultation, according to ASPS. Rounding off the top five cosmetic surgeries for 2011 in the US (by number of procedures) was liposuction ($2859), eyelid surgery ($2741) and facelift surgery ($6426).

Most health insurance policies in Australia don’t cover the cost of cosmetic surgeries to enhance appearance, and patients will typically need to foot the bill – which can run into the tens of thousands of dollars, depending on the procedure. You could take out a personal loan or use a credit card to pay for a procedure, but an automatic savings plan will help you reach your goal debt-free.

For instance, if you deposit $1000 into a high-interest savings account paying, say, 5.5 percent interest and add $250 per month you’ll reach a goal of $10,000 in less than three years, assuming the interest rate remains steady.

By comparison, spending $10,000 on a credit card and making only the minimum repayment each month (around $200) at a rate of 14 percent could see you forking out an extra $13,567 in interest and take you more than 36 years to repay the debt in full.

Costs aside remember, that despite the best efforts of plastic surgeons to deliver a more youthful appearance, the ageing process is an inevitable reality.

Did you find this helpful? Why not share this news?

Advertisement

RateCity

Money Health Newsletter

Subscribe for news, tips and expert opinions to help you make smarter financial decisions

By signing up, you agree to the ratecity.com.au Privacy & Cookies Policy and Terms of Use, Disclaimer & Privacy Policy

Advertisement

Learn more about savings accounts

How can I get a $4000 loan approved?

While personal loans and medium amount loans don’t offer guaranteed approval, there are steps you can take to help increase the likelihood of your application being approved, including:

  • Fulfilling the eligibility criteria (providing ID, proof of residency, proof of income etc.)
  • Checking your credit history (you can order one free copy of your credit file per year, and make sure that there aren’t any errors that may be bringing down your credit score)
  • Comparing carefully before applying (making multiple loan applications can mean having your credit checked multiple times, which can look bad to some lenders and reduce your chances of being approved by them)

What is a savings account?

A savings account is a type of bank account in which you earn interest on the money you deposit. This makes it one of the easiest and safest investment tools.

Can I overdraft my savings account?

A lot of savings accounts won’t let you overdraw. Some will allow this feature but you’ll need to apply first. It’s best to read the fine print and check with your lender whether this is a feature they offer. It can be a helpful addition, but as your lender can charge you a fee as well as interest for going into negative numbers, it’s best to avoid overdrafting when possible.

How to open a savings account for my child?

Some banks and financial institutions allow parents to open a bank account for their child as soon as it is born, and start depositing funds to go towards the child’s future.

Children’s savings accounts generally don’t have fees, and are structured to help develop positive financial habits by limiting withdrawals, encouraging regular deposits, and earning interest on the savings, similarly to standard savings accounts.

How to make money with a savings account?

Savings accounts make you money by earning interest on your savings. The more money you deposit, the longer you leave it in the account, and the higher the account’s interest rate, the more interest you’ll be paid by the bank or financial institution, and the more your wealth will grow.

To make sure your savings account makes money and doesn’t lose money, it’s important to maintain a large enough minimum balance that the annual interest earned exceeds any annual fees charged on the account.

Can you set up a savings account online?

Yes. Several large and small banks offer online applications for savings accounts, and there are also online-only financial institutions to consider.

Online-only savings accounts are often less expensive than other savings accounts, though they may not offer the same flexibility, features, or face-to-face service as more traditional savings accounts.

Who has the highest interest rates for savings accounts?

As banks frequently change their rates, the most accurate way to know who currently has the highest interest rate is to use a savings account comparison tool.

How does interest work on savings accounts?

The type of interest savings accounts accrues is called compound interest. Compound interest is interest paid on the initial deposit amount, as well as the accumulated interest on money you have. This is different from simple interest where interest is paid at the end of a specified term. Compound interest allows you to earn interest on interest at a higher frequency. 

Example: John deposits $10,000 into a savings account with an interest rate of 5 per cent that he leaves untouched for 10 years. At the end of the first year he will have $10,512 in savings. After ten years, he will have saved $16,470.

Can you direct deposit to a savings account?

Yes. You can make one off payments or set up regular direct deposits into a savings account. This can be organised easily through online banking or by making deposits in a branch. Talk to your lender to find out the easiest way for you to set up direct deposits.

How do I open a savings account?

Opening a savings account is a relatively simple process. If you’ve found an account with a suitable interest rate, you’ll just need to get in contact with your chosen lender via a branch, phone call or hop online to begin the process. 

You may be required to provide:

  • Personal details, including identification (driver’s license, passport etc.)
  • Tax file number
  • Employment details

Can you have a joint savings account?

Yes. Joint savings accounts can be useful for two or more people wanting to combine their savings to meet shared financial goals, including spouses, flatmates and business partners.

Some joint savings accounts require all parties to sign before they can access the money. While less convenient, this extra security can help encourage all parties to meet their shared financial goals.

Other joint savings accounts allow any of the account holders to access the money. These accounts can be convenient for financially responsible couples that trust one another implicitly. 

What is a good interest rate for a savings account?

A good rule of thumb to keep in mind with savings accounts is to look for a rate that is higher than the CPI inflation rate. This number is constantly changing, so check the Reserve Bank of Australia’s page. If you aren’t earning interest above this then the value of your money will go backwards over time.

How much money should I have in my savings account?

A good rule of thumb when working out a minimum balance for your savings account is to make sure that you’ll earn more in annual interest on your savings than what you’ll be charged in annual fees.

If you’re saving with a specific goal in mind, prepare a budget so the interest you earn on your deposits will help you efficiently reach this goal. Online financial calculators may be helpful here.

What is the interest rate on savings accounts?

As banks frequently change their rates, the most accurate way to look at interest rates on savings accounts is to use a savings accounts comparison tool. When you look at the savings rate check what the maximum and minimum rates are. Often banks will offer you a promotional rate for the first few months which is competitive, but then revert back to a base rate which can sometimes be less than inflation. Ongoing bonus rates are often a safer bet as they will keep rewarding you with the maximum rate, provided you meet their criteria