The true impact of the cost-of-living crisis has been laid bare in new research from Compare the Market, which reveals that one in five Australians have less than $100 in their savings account.*
A worrying 18.7% of Australians surveyed reported having $100 or less to their name, with high grocery prices, rising insurance premiums and increased energy costs pushing savings to the brink.
Four in five Australians (79.2%) say that the cost of living has impacted their ability to save money over the past 12 months.
Compare the Market’s Chris Ford said it was startling to see how little people were able to save amid the cost-of-living crisis.
“It’s quite a shock to see that so many Australians aren’t able to save or have so little in their savings account, but this is unfortunately a sign of the times,” Mr Ford said.
“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. 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.”
The survey found:
- One in 10 people surveyed (10.3%) said they have no savings, but they’re out of debt
- 8% of those surveyed admitted they’re either in debt or their existing debt is growing
- Around a quarter (26.5%) said they haven’t been able to save as much as they usually do
- 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.
“These new figures show us that many Australians are still struggling to keep their head above water, but may also find themselves in financial trouble if those unexpected emergencies pop up,” Mr Ford said. “Things like a pet eating something it shouldn’t and ending up in the ER, a leaky roof, whitegoods breaking down or receiving a higher-than-expected insurance renewal notice or energy bill could push you into the red.
“We don’t want to see people taking out credit cards, personal loans or relying on Buy Now, Pay Later schemes to cover everyday expenses or those unexpected costs. These types of services typically attract high interest rates, which could see you drowning in debt for longer.
“If you do find yourself falling behind on payments or struggling to keep up, start a conversation with your insurance company, energy retailer, bank or utility provider as early as possible. More often than not, they will be able to offer you assistance.
“It may be in the form of hardship programs, payment extensions or rolling you onto a more affordable plan or offer.”
Mr Ford said there were small things Australians could do that may have a big impact on their hip pocket.
- Don’t stay loyal. Whether you’re doing the grocery shop or dealing with an insurance renewal or energy bill, be aware that loyalty may not always pay. It’s a good idea to do your research, compare and always pay the smallest price possible. Also be sure to utilise any deals or discounts that are on offer.
- Never accept higher prices. When your next renewal notice comes through or you receive a letter telling you prices are increasing, don’t just accept what your current retailer or provider is telling you. Chances are you may not be on the most competitive offer and bigger savings could be available elsewhere.
- Don’t be shy when it comes to bargains or rewards. If a reward or bargain is available, make sure you nab it. Many major retailers and providers have their own reward programs or apps that help you stretch your dollar further. Keep in mind that you may need to boost or activate offers within an app, but a few moments of your time could leave more money in your pocket. Also remember that you may be entitled to savings through your insurer, energy retailer, roadside assist program and more simply for being a member.
- Claim your rebate and concession. If you’re a student, concession card holder or have a Seniors Card, you may be eligible for several rebates, discounts, and concessions. Ensure you update your energy retailer or insurance provider with this information or flash your card when you’re out and about to take advantage of eligible entitlements.
*Survey of 1,010 Australian adults, conducted December, 2024.
For more information, please contact:
Phillip Portman | 0437 384 471 | [email protected]
Compare the Market is a comparison service that takes the hard work out of shopping around. We make it Simples for Australians to quickly and easily compare and buy insurance, energy, and home loans products from a range of providers. Our easy-to-use comparison tool helps you look for a range of products that may suit your needs and benefit your back pocket.
