AMP report finds 1 in 5 Aussies have less than $250 in savings

New research from AMP paints a pretty dire picture of Aussies’ personal finances. According to the study, 1 in 5 Australians have less than $250 in savings. And even more distressing, two thirds of that group have no savings at all. 

AMP CEO, Sally Bruce points to increased costs of living, stagnant wages, and a dismal interest rate environment as key reasons why Australians are having so much difficulty saving their money.

“Our research is reflective of national data, which shows a decline in the savings rate since the GFC. A number of factors have contributed to this including rising housing wealth until recently at a time of weak wages growth and ongoing increases in the cost of living,” she said.

“And with interest rates at record lows it’s little wonder Australians don’t have anything spare to put away, and what they do have saved is only growing slowly.”

Many Aussies in the dark about interest rates

While the report acknowledges the harsh financial realities many face, it underscores the need for Australians to better equip themselves to make informed decisions about their finances. 

The push to improve financial literacy in children might be underway, but there are still age groups for whom such educational measures arrived too late. 

And the result is that many of us are completely in the dark about our finances. As the report tells us, 26% of Australians don’t have a savings account. And among those who do, 43% don’t know their interest rate. 

Almost half (44%) of Aussies acknowledge that a higher interest savings account would improve the state of their finances. 41% said a salary increase would do the job, while 29% said it came down to smarter financial habits.

As Ms Bruce puts it: “The more we can encourage Australians to take an interest in interest, the more they will be able to grow their wealth and reduce the impact of unexpected costs or afford the extra things in life they want.”

To that end, you might want to check out some of the high interest savings accounts on the market right now. Have a browse of the assortment below, and head over to our high interest savings account comparison page for a more in-depth look.

And if you’re looking for ways to turn your finances around, there’s a lot you can do besides switching to a high interest savings account. Here are just a few to consider:

• Set up automatic payments into your savings account.
• Use a budget to keep track of where your money is going.
• Review your phone, energy, and internet plans. You could save a lot of money by switching to a more affordable provider.
• Consider giving up a vice. If you can do without that daily $5 coffee, you could save well over $1,000 each year.