The spike in term deposit contributions coincides with the COVID-19-led global equity and bond market downturn and 12 increases in the Reserve Bank of Australia’s cash rate, which has increased top savings rates to more than 5 per cent. It also reflects cost-of-living pressures and soaring inflation causing middle Australia to cut back on its discretionary spending, according to investment bank UBS. Dunnin says many retirees may be using retirement lump sums to pay off major debts, such as their mortgages, and then applying for the government age pension. But he warns increased economic volatility is resulting in “trends turning…