In a country known for its laid-back lifestyle and ‘fair go’ ethos, a recent revelation has brought to light a stark reality that many Australians are grappling with – the wealth divide. An 84-year-old man’s disclosure of his $2.3 million in savings has sparked a nationwide conversation about the financial disparities that exist across different demographics in Australia.
The man’s financial status came to light through a social media series by property app Copoist, which has been asking Australians of various ages to share their savings amounts. The series, aimed at highlighting the savings people have while waiting for their home deposits to grow, inadvertently exposed a much larger issue.
While the 84-year-old did not delve into the specifics of how he accumulated his wealth, his savings alone were enough to cause a stir online. The contrast was stark when compared to the savings of others who participated in the survey. Women, in particular, reported significantly lower amounts, with a 73-year-old woman having over $100,000, a 75-year-old with over $70,000, and a 64-year-old with $61,000. Meanwhile, a 51-year-old man reported over $500,000 in savings, and another 75-year-old man had $2 million.
This disparity has not gone unnoticed, with social media users questioning why there is such a significant gap between the savings of men and women. The conversation has highlighted the ongoing issue of gender inequality in financial security, with some pointing out the systemic challenges women face, such as career breaks for child-rearing and the pursuit of flexible jobs to manage family responsibilities.
According to financial comparison website Finder, as of December 2024, the average Australian had $40,000 in savings. However, a concerning 43 per cent of people had less than $1,000 to their name. The gender gap in savings is also evident, with the average Australian woman having $42,664 in cash savings compared to $50,479 for men. Furthermore, women save less on a monthly basis, with an average of $617 compared to men’s $854.
Finder’s Equal Pay Day Report 2024 sheds light on the hurdles women face in achieving financial parity, including the impact of having a baby, the need for job flexibility, and the industries they work in. These factors contribute to the wealth divide and underscore the importance of financial education and proactive saving strategies.
Rebecca Pike, a money expert, emphasises the significance of financial literacy in achieving the Australian dream of financial security. She advises that simple, consistent habits in managing personal finances can lead to substantial growth over time. Pike also recommends comparing savings accounts for the best interest rates and being mindful of any fees or balance limits.
The 84-year-old’s savings revelation has prompted others to share their financial situations, many of which pale in comparison. From young adults with no savings and mounting debt to those in their forties and fifties with modest savings, the responses paint a picture of a nation with a wide economic spectrum.
Have you noticed the wealth divide in your own experiences? What approaches have you found helpful in managing your savings and preparing for retirement? We’d love to hear your insights and strategies—join the conversation in the comments below as we explore financial security together.
Also read: What big figure savings could you make?
Ah Envy, nothing is more motivating, and not in a good way. Where one ends up in retirement, major accidents and health issues aside, is the sum of one’s personal life decisions, starting when one starts primary school if not before. The decision to acquire all knowledge on offer, the decision whether to pursue certain subjects and further education with their future impact on career choice, sports vs study, career choice and choice of employer, choice of partner, the lifestyle choice (YES, lifestyle) of whether to have children and when, buying a house and so forth, investment over frugal spending etc. all impact on retirement outcomes. Our welfare system does nothing to help … offers only disincentives to look after one’s own future, penalising a retiree for being in a relationship, for owning their own home, for having saved for their retirement etc. To all young people and their parents, YOUR FUTURE IS IN YOUR OWN HANDS. You can have it now or you can have it in the future, but probably not both … choose wisely
Well said Gaz, I agree with you 100%. What disappoints me is that there is still a lack of real world life skill subjects taught in schools, I and many others had to learn these things the hard way, but knowing how to handle ones finances has meant not living on the pension and instead having the resources to live a comfortable retirement. My tip to the young people I know is to put as much as you can into your super and understand how compound interest works!
Tattoos aren’t free
There has always been a disparity with wealth. There will always been poor, middle class, upper class and wealthy. This will be happening with the generations that are complaining so loudly that retirees should basically hand over their money to them. It is up to each individual what they do with their money and how they spend and invest it. The wiser ones will invest for long term gain. Instead of always looking for the government to help out – remember where they get their money from YOU – start researching and making a plan for your life, it may not always go to plan but don’t just whinge about how unfair life is.