- Typical savings by age bracket unveiled
The cost-of-living crisis in Australia has underscored the difficulty people face when trying to save money.
While inflation is overseeing the increasing expenses of products and services following the depletion of savings due to the Covid-19 lockdowns.
A person who has lost their employment or faced a significant ailment would have fewer resources in their emergency fund to utilize.
This implied the necessity of maintaining funds in the bank for such unexpected financial situations, affecting both tenants and homeowners alike who were facing pressure.
Additionally, one must set aside funds to achieve monetary objectives such as accumulating a down payment for a house loan or planning for an international vacation.
Even though the typical Australian boasts tens of thousands of dollars in their savings account, four out of every ten individuals possess under $1,000 in their bank accounts.
Finder Rebecca Pike, an expert on finances, mentioned that accumulating savings can be quite challenging for younger individuals.
"The Generation Z individuals, along with some younger Millennials, are essentially just beginning their journey, and unfortunately, they’re starting during a challenging period," she explained to Daily Mail Australia.
What is the typical amount saved for each age group?
According to a Finder survey of 1,013 Australians conducted in early 2025, the typical Australian has around $41,023 saved up in their bank account.
However, Generation Z consumers, who were born from 1997 onwards, reported the lowest savings amount at $20,766. In Australia, these younger adults face significant challenges due to rising rental costs.
Ms. Pike mentioned that 'They might earn less money, and they've not had enough time to save anything substantial either. So right now, when faced with additional expenses, they simply lack the financial cushion to rely on.'
'That financial cushion isn’t backing them up.'
Australian Generation X, who were born between 1965 and 1980, showed the highest savings amounting to $49,777, even though they were the group most prone to still having a home loan to settle.
This year, the eldest member of the group will turn 60, allowing them to withdraw their superannuation for retirement.
Individuals from the millennial generation, who were born between 1981 and 1996, held an average saving of $44,276. This demographic was also more prone to allocate a larger portion of their earnings towards mortgage payments compared to others.
Individuals from the baby boomer cohort, who were born between 1946 and 1964, possessed the largest median savings amount at $49,669 since they are the sole generational group permitted to withdraw their superannuation funds.
"The elder groups have accumulated savings over the years, thus having greater equity in their houses," she mentioned.
'A lot of these individuals might have finished paying for their house loans, and if they're putting money into investments, they've managed to earn profits from those over the years.'
People who were born in 1968 and are reaching 67 years old this year have access to the age pension as well, which they can supplement with their superannuation.
Although older Australians tend to have savings, an astonishing 38 percent of individuals possess less than $1,000 in their accounts, with tenants being particularly prone to fall into this category.
"Forty percent of Australians have less than a thousand dollars, implying that there's a significant group likely surviving paycheck to paycheck," she stated.
They're likely pinching pennies and cutting costs wherever they can.
Among those who have less than $1,000 saved up, the average amount is around $120. This means they must carefully choose what they can manage within their weekly or monthly budget.
For some individuals, setting a savings goal might not be simple—since they lack extra funds, saving could indeed be quite challenging for them.
How much money should you set aside for emergencies?
The Commonwealth Bank, which is Australia’s largest provider of home loans, suggests maintaining sufficient funds in an emergency savings account to cover between three to six months’ worth of living costs should you lose your job.
This is particularly true for those with children.
Ms. Pike mentioned that an emergency savings fund usually comprises multiple months' worth of income prior to taxation.
'She mentioned that having savings equal to three to six months of your income ensures you can manage financially if you lost your job or became physically incapable of working.'
Savings in term deposit accounts earn higher interest rates, typically around 4.7 percent, however, they impose charges when funds are withdrawn prior to the expiration date.
Major banks provide an option where funds from your regular checking account can be automatically transferred to a fixed deposit account post payday. This helps prevent splurging on non-essential items such as dining out at restaurants.
"Sometimes, eliminating that temptation or taking away the capability to perform it can be helpful," she stated.
If you realize it will prevent you from accessing that funds, then it could be a suitable option for you; however, you must ensure that you won’t require it during the period you lock it away.
You need to ensure that you won’t urgently require those funds and an unexpected expense doesn’t arise which you cannot cover since your money will be inaccessible.
Having a savings goal
Setting aside funds for a home loan down payment or a significant expenditure such as a new vehicle or an international vacation demands self-control.
Ms. Pike mentioned that achieving a specific financial objective would involve allocating half of one’s income toward expenses like housing, utilities, and groceries, dedicating 30 percent towards desires, with the leftover 20 percent set aside for emergencies or savings goals.
However, if one aimed to save for a house down payment or an international vacation, they should allocate half of their salary for essential expenses and only 20 percent for non-essentials, with the rest—30 percent—going toward savings for significant purchases or emergencies.
"If you have multiple savings objectives – for instance, buying a home – it’s important to also set aside money specifically for maintaining an emergency fund," she explained.
CoreLogic data revealed that Australia's median house and unit price stood at $825,349 in April.
Starting from January 2026, every first-time homebuyer will only require a 5 percent deposit and won’t need to worry about paying for lenders mortgage insurance.
Therefore, 5 percent of $825,349 is $41,267.
Those who already own a home would require a 20 percent down payment of $165,070 for a mortgage without needing to pay lenders' mortgage insurance.
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