Saving the top financial goal

John Kavanagh

Even though households have topped up their savings over the past 18 months, with big flows into deposit accounts, saving remains the top financial goal for Australians.

According to the 2021 Financial Planning Association Money & Life survey, some of the behavioural changes forced on people by lockdowns may have a lasting impact.

A high proportion of respondents (44.7 per cent) said they intended to be more frugal about their lifestyle choices, 43.9 per cent said they wanted to increase their savings and 41.3 per cent said they wanted to pay down debts.

APRA data released last week shows bank retail deposits grow 9.2 per cent over the 12 months to August. The growth rate has accelerated over the past few months.

Among younger people (30 to 34), an even higher proportion (53 per cent) said they want to save more and 45 per cent said they want to create a budget “and understand spending and saving”.

Asked what financial mistakes they had made in the past, or what they would have done differently, 24 per cent said they would have started saving sooner.

Asked about their plans for the year ahead, 52.4 per cent said they want to achieve a savings goal and 44.4 per cent said they want to go on holiday.