A survey of more than 1000 Australians has found that 15 per cent of those surveyed had no money saved for an emergency. According to Compare the Market’s Natasha Innes, it’s a worrying statistic.
“There’s no denying that it’s costing Australians a lot more to live than it has in the past, but it’s concerning that such a large number of us appear to be living pay cheque to pay cheque and have no emergency fund to rely on if we fall on hard times,” Ms Innes said.
“Without an emergency fund, many Australians could find themselves swimming in debt or taking out credit cards or loans with high-interest repayments.”
The data shows that, on average, Australians have $19,998 saved in their emergency fund, although the average does vary greatly between generations.
On average, those aged between 18 and 25 (Gen Z) have just $1019 in their emergency fund.
The average emergency fund is significantly more for Millennials at $20,746 and higher again for Gen X at an average of $23,405. However, it’s the Baby Boomer generation with the most money squirrelled away, with the average emergency fund sitting at $23,504.
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