Rising Costs Challenge Australian Savings: New Survey Insights

2

The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.

A recent survey of 1,005 Australians highlights that nearly a quarter of participants (24.68 percent) could only support themselves for a month or less on their savings if they encountered a job loss or an inability to work. This statistic drops to 12.04 percent for those stating they could last up to two months, while a more fortunate 16.52 percent affirmed they could sustain their lifestyle for a year or more on their savings.

Chris Ford, a spokesperson for Compare the Market, remarked on the situation, stating, "The results of this study underline the tough economic environment many individuals and families are grappling with daily, as they navigate multiple interest rate hikes and inflation surges."

One particularly striking comparison is that Australians had higher debt levels than their American and Canadian peers. This trend is most pronounced among recent homebuyers, especially those under 41 years of age. The average Australian monthly savings figure stands at AUD 964, despite these financial hurdles.

Ford emphasized the importance of strategic financial planning, noting, "Savings remain crucial. That's why making informed choices on essentials-like insurance, home loans, electricity, and fuel-can aid in building a robust savings buffer."

The survey also included responses from 1,003 individuals in the United States and 1,002 in Canada. Approximately 24.23 percent of U.S. respondents could live on their savings for one month or less, while Canada reported a similar figure at 24.25 percent. Notably, both countries fared marginally better than Australia in terms of savings longevity, with 15.85 percent of Americans and 12.97 percent of Canadians able to last 12 months or more on their savings.

Debt comparisons showed that Australians hold the highest amounts, encompassing student loans, home loans, personal loans, and buy-now-pay-later (BNPL) debt. Australians owe, on average, AUD 145,140 (USD 93,935), compared to an average personal debt of USD 50,157 for Americans and CAD 50,967 (USD 37,032) for Canadians.

Additional findings reveal demographic nuances across countries. Americans and Canadians aged 26-41 are more prone to tapping into their savings monthly for expenses (37.62 percent and 33.35 percent, respectively). Conversely, the Australian Generation Z cohort, aged 18-25, reported being more frequent savers (27.61 percent using savings for expenses monthly).

Interestingly, Australian parents appeared most likely to dip into their children's savings to buffer personal financial shortfalls (15.48 percent), surpassing their Canadian (12.54 percent) and American (11.82 percent) counterparts.

Amid these revealing findings, the broader narrative underscores the necessity for prudent and informed financial management in navigating today's challenging economic landscape.

Published:Tuesday, 25th Jun 2024
Source: Paige Estritori

Please Note: If this information affects you, seek advice from a licensed professional.

Share this news item:

Finance News

Clear

BIA Advocates for Government Support Amidst Marine Industry Skills Shortage

18 Dec 2025: Paige Estritori

The Boating Industry Association Ltd (BIA) has recently called upon all levels of Australian government to provide strategic support to the nation's marine manufacturing and recreational boating sector. This appeal comes in response to a significant skills shortage that poses a threat to the industry's economic potential. - read more

Australian Boating Industry Poised for $20 Billion Expenditure by 2030

18 Dec 2025: Paige Estritori

The Boating Industry Association (BIA) has released the National Recreational Boating Statement, providing a comprehensive overview of the sector's scale, value, and future projections. The statement forecasts that by 2030, Australians will spend $20 billion annually on boating activities, underscoring the industry's significant economic and social impact. - read more

Ian Thorpe Embarks on New Challenge in Sydney-Hobart Yacht Race

10 Dec 2025: Paige Estritori

Australian Olympic swimming legend Ian Thorpe is set to make waves in a new arena by joining the crew of the supermaxi yacht LawConnect for the upcoming Sydney-Hobart Yacht Race. This marks a significant transition for Thorpe, who has previously dominated the swimming world with five Olympic gold medals. - read more

BIA's 'Discover Boating' Initiative Encourages Australians to Embrace the Water

10 Dec 2025: Paige Estritori

The Boating Industry Association Ltd (BIA) has unveiled its annual 'See You Out There' campaign, a key component of the 'Discover Boating' initiative aimed at inviting Australians to experience the joys and benefits of boating. Launching on November 1, this campaign seeks to highlight the freedom, connection, and well-being that come from spending time on the water. - read more

Sydney International On-Water Boat Show 2025: A Resounding Success

10 Dec 2025: Paige Estritori

The 56th Sydney International On-Water Boat Show has successfully concluded after four dynamic days at Darling Harbour, reaffirming its status as a premier event in Australia's marine industry. Presented by the Boating Industry Association Ltd (BIA) in partnership with Mulpha Events, the show attracted over 20,000 visitors, offering a comprehensive showcase of the boating lifestyle. - read more

Celebrating the Success of the 2025 Sydney International On-Water Boat Show

02 Dec 2025: Paige Estritori

The 56th Sydney International On-Water Boat Show, held from 13 to 16 November 2025 at Darling Harbour, has concluded with remarkable success. This year's event attracted over 20,000 visitors, underscoring the enduring appeal of Australia's marine lifestyle and industry. - read more

Click for more Finance News