New research has revealed exactly how much the average Australian has saved up, while also revealing the majority of people don’t have an adequate rainy-day fund in case of an unexpected emergency.
According to the report from ING, just 22 per cent of adults have three months’ worth of expenses stashed away, and some 20 per cent have less than $1000 in savings.
The level of savings differs from generation to generation, with Gen Z – unsurprisingly so, given their age – sitting at the lowest: the majority have less than $10,000 in total savings.
Young Australians are confident in their savings strategies, but most don’t have an adequate rainy-day fund stashed away. (Peter Rae)
The average for the generation is $16,475, and just 19 per cent of Zoomers have a three-month emergency fund.
By comparison, Baby Boomers – almost a quarter of whom have a proper rainy-day fund in the bank – have an average of $26,440 in savings, followed by Millennials with $25,794 and Gen X at $21,088.
“It’s still really important to make sure we’re prepared for the unexpected,” ING head of consumer and market insights Matt Bowen said.
“Whilst emergency funds aren’t popular, having some money in a high interest savings account can help when you’re in a pickle.”
But despite that disparity, the research found that not only are Gen Zers more likely to have multiple income streams than their older counterparts, more of them (69 per cent) are confident in the savings systems they’ve put in place.
The research from ING found the majority of Gen Z has less than $10,000 in savings. (Getty Images/iStockphoto)
According to the research, they are also the generation that is most likely to believe that higher earnings lead to more happiness, with 57 per cent holding that view, as opposed to 55 per cent of Millennials, 39 per cent of Gen X, and 23 per cent of Baby Boomers.
“We understand how difficult it is for Gen Zs right now in this economic environment – but it’s exciting that they are so proactive in securing their financial futures,” Bowen said.
“This generation has had the most access to wealth-building tools, research and platforms by far.
“And it’s interesting to see that while the research shows Gen Zs believe earning more money equals more happiness, that’s not at the expense of their mental health and wellbeing, as 59 per cent would take a pay cut for a job that is less stressful.”