Millions of Australians are being forced to withdraw thousands from their savings to cover costs like rents and mortgages, according to new research by Finder.
The survey revealed that more than half of Aussies (54 per cent) have had to raid their savings account in the past 12 months for reasons other than their saving goals, with
13 per cent using their savings to cover increased rent and mortgage costs.
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Rents and mortgages are among the leading causes of Aussies withdrawing from their savings. Picture: iStock
According to Finder, around 12 million people have had to take a savings hit, with the average Aussie withdrawing $7,274 over the course of the year.
This creates a total drain of $85 billion on savings nationwide.
Almost one-quarter of Aussies (24 per cent) needed to pay for everyday essentials like fuel, bills and groceries.
Emergency expenses (19 per cent), debt (9 per cent) and school fees (7 per cent) were other leading causes of savings withdrawal.
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Millions of Aussies are dipping into their savings to cover essential costs like groceries and fuel. Pictures: Supplied
Finder head of consumer research Graham Cooke said persistent inflation is having a serious impact on people’s finances.
“Budgets are stretched to the limit and plenty of people are running into trouble and having to turn to their savings,” he said.
“With everyday costs climbing again, many households are stuck in a cycle where they’re dipping into savings just to make ends meet, leaving little buffer for future shocks.”
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Finder’s Graham Cooke called upon Aussies to build up an emergency fund. Picture: Supplied
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Mr Cooke said it was tough to meet savings goals in the current economic climate.
“With fuel and borrowing costs blowing out again it’s becoming even more difficult to put away excess cash,” he said.
“However, saving money is a key step toward achieving financial security.”
Mr Cooke urged Aussies to create different savings accounts for different goals.
“A dedicated emergency fund could stop you draining your savings when an unexpected bill hits,” he said.
“A high-yield savings account could earn you an extra $1,500 a year right now when every dollar counts.”
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