How much do you really have tucked away for a rainy day? If you’re like millions of Australians, the answer might be a lot less than you’d hope—and the numbers are more sobering than ever.
A recent survey by Finder’s Consumer Sentiment Tracker has pulled back the curtain on the state of our collective savings, and the results are enough to make anyone clutch their wallet a little tighter.
While the average Aussie reportedly has about $33,345 in their bank account, that figure is wildly skewed by a small number of high savers.
The reality for nearly half the country is far more precarious.
The $215 reality: A nation on the brink
A staggering 43 per cent of Australians—that’s about 9.2 million people—have less than $1,000 in savings.
And for those in this group, the average amount sitting in their account is just $215. Even more alarming, 18 per cent (4.3 million people) have absolutely nothing set aside. Not a cent.
It’s a stark reminder that, for many, the cost-of-living crisis isn’t just a headline—it’s a daily struggle. The stories behind these numbers are as varied as they are heartbreaking.
Take the 59-year-old who told loan company Coposit he has just $19 to his name. ‘Food has gone up from $150 a week, and now it’s like $300… it’s crazy.
A loaf of bread went from $1.85 to almost $3, [it’s] doubled in the last 12 months.’ For him, and millions like him, the weekly shop is now a source of anxiety rather than comfort.
Younger Australians aren’t faring much better. A 24-year-old student in Sydney, working part-time, has $600 in her account and says, ‘Living out of home at 24 is very expensive… [Renting] makes it even more difficult to save that money, because there’s no backup.’
Another young Sydneysider, just 22, admits he’s ‘broke’—not just because of sky-high rents, but also a few too many nights out.
‘Sydney is expensive… you can go get a stbox apartment for $300 a week… that’s like, heaps, right? One bedroom, and you got a sink that doesn’t work. Laundry doesn’t work, you know? It’s just too pricey. But I also go out too much and drink too much.’
Even international visitors are feeling the pinch. A 24-year-old from Germany, living in Sydney, says rent is her biggest wallet drainer—she has just 67 cents in her savings account.
Older Australians: Wisdom or worry?
It’s not just the young who are struggling. A 77-year-old former music promoter, who once worked with bands like Men at Work and INXS, has zero savings.
But he’s philosophical about it: ‘Spend your money. You can’t take it with you. You’ve got a million dollars when you die or no money, having no money’s better.’
While that’s one way to look at it, most financial experts would urge a little more caution. Findex financial adviser Jess Bell recommends having at least three months’ worth of income stashed away for emergencies. ‘That’s at least comfortable to provide for emergencies,’ she says.
‘You need to make sure you have emergency funds to provide for those contingencies that just come out of the blue. It’s making sure that you allow for when things go wrong, because they can go wrong.’
How do you compare? Average savings by age
Curious how your savings stack up? Here’s what Westpac data says about the average (mean and median) savings by age group:
- 17 and under: $4,769 (mean), $1,135 (median)
- 18 to 24: $13,069 (mean), $2,410 (median)
- 25 to 29: $19,165 (mean), $2,200 (median)
- 30 to 34: $21,394 (mean), $1,104 (median)
- 35 to 44: $29,769 (mean), $811 (median)
- 45 to 54: $52,836 (mean), $1,429 (median)
- 55 to 64: $87,891 (mean), $5,316 (median)
- 65 to 74: $101,004 (mean), $15,829 (median)
- 75 and over: $130,597 (mean), $31,424 (median)
Notice the huge gap between the mean and median? That’s a sign that a small number of people with very large savings are pulling the average up, while most Australians have far less.
Why are we struggling to save?
The reasons are as complex as they are familiar. The cost of living has soared, with essentials like groceries, rent, and utilities all climbing faster than wages.
For renters, especially in major cities, the squeeze is particularly tight. And for those on fixed incomes or relying on government support, there’s little room to manoeuvre.
Add to that the temptation (or necessity) of spending on little luxuries or social outings, and it’s easy to see how savings can dwindle.
For some, it’s a conscious choice—as our 77-year-old friend says, ‘You can’t take it with you.’ For others, it’s simply a matter of survival.
What can you do?
If you’re feeling the pinch, you’re not alone. But there are steps you can take to build a buffer, even if it’s just a small one:
1. Track your spending: Awareness is the first step. Use a notebook or an app to see where your money is going.
2. Set a savings goal: Even $10 a week adds up over time.
3. Automate your savings: Set up a direct debit to move money into a separate account as soon as you’re paid.
4. Review your expenses: Are there subscriptions or services you can cut back on?
5. Seek help if you need it: Financial counsellors can offer free, confidential advice.
Your turn: How are you coping?
We know our YourLifeChoices community is full of wisdom, resilience, and practical tips. How are you managing the rising cost of living?
Have you found creative ways to save, or are you struggling to keep your head above water? Do you agree with the ‘spend it while you’ve got it’ philosophy, or are you a dedicated saver?
Share your stories, tips, and questions in the comments below. Let’s help each other navigate these challenging times—because when it comes to money, a little community support can go a long way.
Also read: Half of Australians are missing out on rate cut savings—here’s how to fix it fast
If the cost of living increases at its current rate under the Labor party, Australia will have a poverty level close to most other third world countries. A government cannot continually spend on policies that produce no increase in productivity and expect the population to increase its standard of living. Wake up.
@Peter: There is a very long list of things that are outside the control of the Incumbent Government, irrespective of which Party that is, which affect the cost of living !!
Most are due to the Cost of Imported Products and the Cost of Transporting them !!
So, How do you think that the Government can Control those two costs ??