Australians’ savings dangerously low
A new index from ING DIRECT has revealed a worrying trend among Australians’ savings patterns – or, rather, lack of savings patterns.
At the ING DIRECT media drinks that the Smart Property Investment team attended in Sydney last night, the lender revealed that Aussies are tracking ok with their mortgage repayments.
According to ING DIRECT’s CEO Don Koch, one in two mortgage holders are ahead on their home loan commitments.
But one of the downsides of that eagerness to pay off mortgage debt is the lack of extra cash Aussies are sticking away. Moreover, for those Australians that don't have a mortgage, their savings habits would appear to be lax.
The median level of savings per household, according to the ING DIRECT Q2 Financial Wellbeing Index, sits at just $6,848. Furthermore, more than 50 per cent of households have less than $17,000 in savings, while 17 per cent said they had none.
And while we might like to think those households without savings are struggling families, according to ING DIRECT, one in every ten households earning more than $100,000 doesn’t have any savings either.
These figures are actually quite alarming. Without any extra cash, we’re leaving ourselves vulnerable to the unexpected – be it sudden medical problems or unanticipated bills, not to mention failing to build a decent deposit for a home loan...
With interest rates on savings accounts currently very attractive, buck the trend, and get saving your precious pennies now. Not sure how? Check out our August issue featuring five strategies to help you pump up your piggy bank.