In a country known for its laid-back lifestyle and ‘fair go’ ethos, a recent revelation has brought to light a stark reality that many Australians are grappling with – the wealth divide. An 84-year-old man’s disclosure of his $2.3 million in savings has sparked a nationwide conversation about the financial disparities that exist across different demographics in Australia.
The man’s financial status came to light through a social media series by property app Copoist, which has been asking Australians of various ages to share their savings amounts. The series, aimed at highlighting the savings people have while waiting for their home deposits to grow, inadvertently exposed a much larger issue.
While the 84-year-old did not delve into the specifics of how he accumulated his wealth, his savings alone were enough to cause a stir online. The contrast was stark when compared to the savings of others who participated in the survey. Women, in particular, reported significantly lower amounts, with a 73-year-old woman having over $100,000, a 75-year-old with over $70,000, and a 64-year-old with $61,000. Meanwhile, a 51-year-old man reported over $500,000 in savings, and another 75-year-old man had $2 million.
This disparity has not gone unnoticed, with social media users questioning why there is such a significant gap between the savings of men and women. The conversation has highlighted the ongoing issue of gender inequality in financial security, with some pointing out the systemic challenges women face, such as career breaks for child-rearing and the pursuit of flexible jobs to manage family responsibilities.
According to financial comparison website Finder, as of December 2024, the average Australian had $40,000 in savings. However, a concerning 43 per cent of people had less than $1,000 to their name. The gender gap in savings is also evident, with the average Australian woman having $42,664 in cash savings compared to $50,479 for men. Furthermore, women save less on a monthly basis, with an average of $617 compared to men’s $854.
Finder’s Equal Pay Day Report 2024 sheds light on the hurdles women face in achieving financial parity, including the impact of having a baby, the need for job flexibility, and the industries they work in. These factors contribute to the wealth divide and underscore the importance of financial education and proactive saving strategies.
Rebecca Pike, a money expert, emphasises the significance of financial literacy in achieving the Australian dream of financial security. She advises that simple, consistent habits in managing personal finances can lead to substantial growth over time. Pike also recommends comparing savings accounts for the best interest rates and being mindful of any fees or balance limits.
The 84-year-old’s savings revelation has prompted others to share their financial situations, many of which pale in comparison. From young adults with no savings and mounting debt to those in their forties and fifties with modest savings, the responses paint a picture of a nation with a wide economic spectrum.
Have you noticed the wealth divide in your own experiences? What approaches have you found helpful in managing your savings and preparing for retirement? We’d love to hear your insights and strategies—join the conversation in the comments below as we explore financial security together.
Also read: What big figure savings could you make?
