Households continue to build savings

John Kavanagh

A feature of Australia’s COVID experience last year was an increase in the amount of households savings, and that has continued this year.

According to the latest ME Bank Household Financial Comfort Report, 58 per cent of households typically spend less than they earn each month. This is up from 49 per cent in December 2019 and the historical average of 50 per cent.

Thirty-four per cent said they spend all their income and no more, and 8 per cent said they spend all their income and more. The report is based on a survey of 1500 households conducted in June.

Savers said they save an average of A$960 a month. Twenty-two per cent have between $1000 and $10,000 saved, 9 per cent have between $10,000 and $20,000 and 48 per cent have more than $20,000.

On the flipside, 21 per cent of households said they have less than $1000 in savings and 24 per cent said that if they lost their income they would be able to maintain their current lifestyle for only a month.