The scary number of Australians with less than $1,000 in the bank – and one in five have no savings
Nearly one in two Australians have less than $1,000 in the bank during a cost-of-living crisis.
Finder, a financial products comparison group, found that 45 percent of consumers had saved less than $1,000, based on a large sample survey of 3,214 Australians from January to March.
Financial worries are worsening even as unemployment fell back to 3.7 percent in February, down from a January high of 4.1 percent, while 116,500 new jobs were created.
Nearly one in two Australians have less than $1,000 in the bank during a cost-of-living crisis (stock image)
Graham Cooke, head of consumer research at Finder, said even something as simple as a flat tire is now enough to cause anxiety.
“Cost-of-living pressures in Australia are at a record high, which is why it is a major concern that so many Australians do not have a savings buffer,” he said.
‘Even something as trivial as a flat tire would be too much for many households at the moment.
“Millions live paycheck to paycheck, and many run out of money long before the month is out.”
The Finder research also found that one in five Australians, equating to 4.2 million people, had nothing in the bank.
A fall in unemployment in Australia would usually be seen as a sign of good economic news, but amid a cost-of-living crisis it has fueled fears that inflation will rise again.
EY senior economist Paula Gadsby noted that unemployment is now much lower than the Reserve Bank’s forecast of 4.2 percent in June 2024.
“Today’s result shows that the unemployment rate is well below the Reserve Bank’s forecast and justifies the Governing Council’s cautious approach,” she said.
“If anything, it poses an upside risk for the Reserve Bank to ensure inflation returns to target, with a tight labor market likely to keep pressure on wages.”
Graham Cooke, head of consumer research at Finder, said even something as simple as a flat tire is now enough to cause anxiety (stock image)
Reserve Bank of Australia Governor Michele Bullock said it was too early to rule out another rate hike as the board left the cash rate at a 12-year high of 4.35 percent .
Inflation fell to 4.1 percent last year and with wage growth of 4.2 percent, employees will see a real wage increase for the first time since 2021.
But Reserve Bank of Australia Governor Michele Bullock said it was too early to rule out another rate hike as the board left the cash rate at a 12-year high of 4.35 percent.
“The war has not yet been won, so we remain vigilant and cannot rule anything in or out,” she said on Tuesday.
The Finder research also found the average Australian had $36,095 in bank savings, with big savers skewing the data.
Of those with more than $1,000 in savings, the average bank balance was a whopping $65,078 – or two-thirds of Australia’s average full-time salary of $98,218.
That would be good for people with a mortgage, but not if they are saving for a mortgage.