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Jul 22 , 2022
The average 18 to 34-year-old is saving 32 per cent of their monthly income, giving them the title of Australia’s best savers.
The Suncorp Best Saver Report has found the amount is significantly more than the national average, which sits at 23 per cent of monthly income.
Suncorp said that while “they may be known as the smashed avocado generation”, the average 18 to 34-year-old has now surpassed their parents and grandparents in the savings game.
It indicated that those aged 35-54 years old are saving 20 per cent of their monthly income, while those aged 55-plus are saving just 19 per cent.
Commenting on the findings, the bank’s EGM consumer banking, Chris Fleming, said, “Many in this age group are likely to be enjoying an increase in their income as they finish university or build their career, while still having the flexibility of fewer big financial commitments.”
Mr Fleming conceded that the saving “sweet spot” is a strength held by the age group, “which generally stops as you get older”.
He considered it as “interesting to see the top savers in this younger age group were motivated by tangible goals – buying their first home, investment property or shares, which goes against the common assumption that this generation has given up on the great Australian dream of home ownership”.
According to the research, people who fit the best saver profile are generally confident about their own understanding of money and finances.
As a persona, the report indicated that “an 18-34-year-old female, with no kids, living in NSW, working full-time, who is focused on a tangible goal (property, shares), frequently entertains friends at home, uses tap and go or Apple Pay for purchases and brings lunch to work, tends to be Australia’s best saver”.