Staggering annual salary Australians must consider themselves 'rich'

Australians need an annual salary of almost $350,000 a year to 'feel rich' – several times the wage of the average Australian, new research shows.

A Finder survey of 1,032 respondents found that the average Australian said feeling rich requires an annual salary of $345,819, an eye-watering figure that is almost five times the average income of $72,753.

Millennials (people born between 1981 and 1996) had the highest expectations, estimating that figure at $418,325, followed by Gen Z (people born between 1997-2012) at $392,077.

On the other end of the spectrum, baby boomers (people born between 1955 and 1964) said earning $273,812 meant you were rich, while Generation X (people born between 1965 and 1980) said that amount was $307,257.

Money expert Rebecca Pike said the rising cost of living had also raised people's expectations about how much they needed to consider themselves wealthy.

“Remember, only a small percentage of the population earns somewhere in the region of $346,000 – the typical Australian has a salary closer to $70,000,” she said.

'That said, it has been an incredibly difficult few years for many, with household budgets pushed to the limit.

'With everything from rising property prices to expensive energy bills, the average person now feels like they have to earn a lot more to get rich.'

For people looking to prioritize saving money as their New Year's resolutions, Ms Pike said it's important to “take stock of where your money is going”.

“Cut back on anything you don't use or no longer need, and don't pay too much for what you do need,” she said.

'From energy to insurance to your mobile provider, compare your options to ensure you get the best value for your money. If you haven't switched in the last six to 12 months, you're probably paying too much.”

Despite high expectations for what will count as rich in 2024, recent Finder research into savings accounts found that almost one in two Australians (46 percent) said they could only survive on their savings for a month or less, with the average Australian a built up income. a buffer of $37,975.

On average, men have $52,655 in savings, almost $30,000 more than women who averaged $23,223.

The average Australian may find the 'rich' salary eye-watering, as it is about five times the average salary of around $70,000 (stock image)