‘Concern’: Dire state of Aussies’ savings

Almost half of all Australian have less than $1000 in savings in their bank account, while one in five have none at all, shocking new data has revealed.

The report by comparison website Finder estimates about 9.4 million Australians have less than a grand in the bank to fall back on or to splurge with.

Worst still, the report found 20 per cent of the 3214 respondents had no savings at all, meaning as many as 4.2 million Australians have no safety net.

Finder head of consumer research Graham Cooke said the findings came at a time of “record high cost-of-living pressures” on Australian households.

“That is why so many Aussies having no savings buffer is a huge concern,” Mr Cooke.

“Even something as trivial as a flat tyre would be too much for many households right now.

“Millions are living pay to pay, with many running out of money long before (the end of) the month.”

Mr Cooke said the low levels of savings meant people were more likely to turn to credit cards or buy-now, pay-later schemes to make ends meet.

Of the millions of Australians with less than $1000 in the bank, the average balance was only $210, barely enough to cover expenses like a flat tyre.

Australians overwhelmingly reported financial strain, with 76 per cent of respondents stating they were stressed by their financial situation.

By contrast, the average bank balance according to the report was more than $36,000, meaning the nation’s “super savers” were pulling up the average.

Of those with more than $1000 on hand, the average bank balance was $65,078 – two-thirds of the average full-time salary in Australia of $98,217.

Mr Cooke urged people to aim to have three months’ income to fall back on and to find ways to save on everyday expenses and increase income streams.