Survey finds third of Baby Boomers aren’t maximising savings potential
Calls for Australians to refine their savings habits are intensifying, amid revelations that almost a third of Australians are creating a $2.3 billion pile of lost income by not saving effectively.
The calls are being backed up by data from RaboDirect’s Financial Health Barometer for 2015. Gathered form a survey of around 2,500 Australians, the Financial Health Barometer found that a third of Baby Boomers were not making the most of opportunities to maximise their savings.
The $2.3 billion figure is based on the fact that 40 per cent of Australians are doing the lion’s share of their saving in transaction account, with significantly lower interest rates, as well as how frequently people think about their finances and check their bank accounts.
Interestingly, it’s the younger generations that are saving more effectively. RaboDirect’s figures suggest that only 14 per cent of Generation Y are not taking the opportunity to maximise their individual savings, compared with nearly one third (27 per cent) of Baby Boomers.
Glenn Wealands, Head of Research & Analytics, Rabobank Australia and New Zealand Group, elaborated: “Our research indicates it’s the younger generations that are actively seeking saving methods that allow them to stay in control and feel financially stable. However, we would encourage Baby Boomers to maximise their savings by taking steps such as opening an account earning a high interest rate and checking their accounts on a regular basis to help achieve their financial goals."
Yellow Brick Road executive chairman Mark Bouris said many savers were too worried about security to look beyond the big banks, despite other products being a relatively safe investment for their money, “They’re scared and banks run campaigns to scare people. These are the people most vulnerable because they’re easily scared and get poor returns. The banks make lots of money on this lazy cash. It’s about making sure your money lasts longer. We are all living longer, and what the financial services sector is not doing is making sure we live longer and live with quality.”
Other interesting findings from the Financial Health Barometer for 2015 include:
- Pets are regarded as essential to the health and wellbeing of pet owners, with Australians more likely to minimise power usage or switch to cheaper products before cutting spending on their furry friends
- The average Australian could only live on their savings for four months
- The more money Australians spend on healthy lifestyle choices, such as exercise and organic food, the happier they are
- Almost one in three Australians are saving for a holiday, whilst beer lovers spend more than $1,000 per year on beer
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