New data from Compare the Market has found that one in five Australians has less than $100 in their savings account.
These results came from a new research survey spanning 1,010 Australian adults, and conducted in December of last year.
High grocery prices, insurance premiums and rising energy bills were all cited as key reasons for the loss of savings in respondents, with nearly 80% saying the ongoing cost of living crisis impacted their ability to save money over the past 12 months.
Additionally one in 10 people surveyed said they have no savings, but were out of debt, over 26% said they haven’t been able to save as much as usual and 5% admitted that their savings are going backwards.
Just 4.2% of Australians say they’ve been able to save more over the past 12 months, while 16.6% said they’ve been able to save money consistently.
Compare the Market expert Chris Ford said the results were “quite a shock” but ultimately was “a sign of the times”.
“Inflation may be returning to the RBA’s target range, but the reality is it’s going to take some time before our savings accounts catch up," Ford said.
"Prices don’t necessarily go backwards when inflation slows down, and boosting your savings can feel like an uphill battle – particularly if you’re living paycheque to paycheque.”
