The average Australian savings account balance varies depending on your age. According to a Westpac survey released in December 2021, the average customer has $22,020 in their savings account. The bank said this figure was likely skewed by larger deposit holders and pointed to a “more realistic figure” of $3,559.
This data is the latest available from this source but is from 2019, and some sources put average savings even higher: Northwestern Mutual's 2022 Planning & Progress Study revealed that the average amount of personal savings (not including investments) was $62,086 in 2022.
A common rule of thumb is to have at least three months and ideally six months worth of living expenses in your savings at a minimum. This is to ensure you can manage if you were to suddenly be out of a job, if a health problem emerges or a change in personal circumstances occurs.
According to the research from Finder, one in five Australians (19 per cent) have no savings in case of an emergency, while 41 per cent have between $2 and $5,000 in cash savings.
By age 30, you should have saved close to $47,000, assuming you're earning a relatively average salary. This target number is based on the rule of thumb you should aim to have about one year's salary saved by the time you're entering your fourth decade.
Is $20,000 a Good Amount of Savings? Having $20,000 in a savings account is a good starting point if you want to create a sizable emergency fund. When the occasional rainy day comes along, you'll be financially prepared for it. Of course, $20,000 may only go so far if you find yourself in an extreme situation.
Saving $10,000 a year is great. It can help you accomplish a variety of financial goals, such as saving, investing, and paying off debt.
The average Australian savings account balance varies depending on your age. According to a Westpac survey released in December 2021, the average customer has $22,020 in their savings account. The bank said this figure was likely skewed by larger deposit holders and pointed to a “more realistic figure” of $3,559.
Despite this, around one in five (22%) Australian households in the survey reported having less than $1,000 in cash savings.
The average full time salary in Australia is $68,250 per year or $35 per hour. Entry-level positions start at $56,964 per year, while most experienced workers make up to $104,996 per year.
To feel rich, baby boomers want $313,031 per annum, generation X $354,100, generation Y (millennials) $329,290 and generation Z $286,964. In 2020, the Australian prime minister earned $549,250 in total and a federal politician's base salary was $211,250.
Average household debt grew by 7.3 per cent to $261,492 in 2021-22, according to the latest figures from the Australian Bureau of Statistics (ABS).
Standard financial advice says you should aim for three to six months' worth of essential expenses, kept in some combination of high-yield savings accounts and shorter-term CDs.
While $5,000 is certainly an impressive amount of money to have in the bank, it may not be enough to constitute a true emergency fund. Let's imagine you typically spend $2,500 a month on rent, transportation, food, medication, utilities, and other necessities.
By age 25, you should have saved about $20,000. Looking at data from the Bureau of Labor Statistics (BLS) for the third quarter of 2022, the median salaries for full-time workers were as follows: $690 per week, or $35,880 each year for workers ages 20 to 24.
So, to answer the question, we believe having one to one-and-a-half times your income saved for retirement by age 35 is a reasonable target. It's an attainable goal for someone who starts saving at age 25. For example, a 35-year-old earning $60,000 would be on track if she's saved about $60,000 to $90,000.
Almost half of all Australians live pay-to-pay. For those on a limited income, especially our veterans whose earning capacity is impacted by injury or illness, unexpected bills can throw the budget into a tailspin.
The average Australian has $28,409 in savings
This is according to the last 12 months of data from Finder's Consumer Sentiment Tracker. Households earning more than $100,000 per year ($46,146) have around 3 times as much money saved as households earning less than $50,000 ($16,417).
How much does the average household have in savings? While the median bank account balance is $5,300, according to the latest SCF data, the average — or mean — balance is actually much higher, at $41,600.
Our 2022 Poverty in Australia Snapshot found that there are 3.3 million people (13.4%) living below the poverty line of 50% of median income, including 761,000 children (16.6%). In dollar figures, the poverty line works out to $489 a week fir a single adult and $1,027 a week for a couple with 2 children.
On a mean wealth basis, Australia was the fourth-richest country in 2021 behind Switzerland, the US and Hong Kong. The average Australian adult was worth $US550,110 at the end of last year, after enjoying a $US66,350 annual increase in wealth.
A high-expenditure single household requires $745,000, while a couple needs $1,003,000. These figures are based on the average retirement age of 65 in Australia, and an average life expectancy of 90. It also assumes that the retirees own their home outright.
How much is too much cash in savings? An amount exceeding $250,000 could be considered too much cash to have in a savings account. That's because $250,000 is the limit for standard deposit insurance coverage per depositor, per FDIC-insured bank, per ownership category.
The rule of thumb
So, if you spend £1,000 a month on mortgage or rent, food, heating bills and other things you can't live without, you should aim for £3,000 in emergency savings. But, remember any amount saved will help you if you have to pay for something you weren't expecting.
By 40, Fidelity recommends having three times your salary put away. If you earn $50,000 a year, you should aim to have $150,000 in retirement savings by the time you are 40. If your annual salary is $100,000 a year, you should aim to have $300,000 saved.