Finder money expert Sarah Megginson said ideas of wealth are changing as cost of living soars.
Australians have dramatically reset the meaning of wealth, with research revealing a salary once considered elite no longer cuts it.
The survey results from comparison group Finder showed the six-figure dream is officially dead, with Australians saying they wouldn’t feel rich unless they were earning close to $400,000 a year.
The average figure needed to feel wealthy now sits at $389,118 annually — a staggering amount when compared with the average full-time annual salary of about $104,000.
The research shows the perception of wealth has shifted sharply as living costs surge, particularly housing, rents and essential bills, forcing Aussies to rethink what financial security looks like.
But the number isn’t the same for everyone.
Generational divides are stark, with younger Australians setting far higher income benchmarks than their older counterparts.
MORE: Aussies told: act that will make you $3000 a week on the side
MORE: Move that scored Aussie couple $500k in a year
Millennials topped the list, believing it takes an eye-watering $470,881 a year to feel rich.
Gen X followed at $416,067, while Gen Z placed the figure at $351,793. Baby Boomers were the outlier, needing just $273,648 to consider themselves wealthy.
Finder personal finance expert Sarah Megginson said the gap reflected life stage pressures.
She explained that Millennials and Gen X faced the combined strain of homeownership, childcare, education costs and retirement planning, often without the benefit of existing wealth.
MORE Jeff Bezos adds bizarre feature to $249m home
Gen Z had lower money expectations than Millennials.
MORE: Suburbs tipped for price surges when RBA rates rise
Baby Boomers tended to be more financially secure with lower living costs, while Gen Z was more likely to live at home or share accommodation, keeping expenses down.
There was also a gender gap in money perceptions, albeit a narrowing one.
Men said they’d need $393,438 a year to feel affluent, compared with $384,424 for women, a difference of about $9,000. In 2022, that gap was more than double.
Ms Megginson warned that constantly chasing higher income targets can come at a cost, noting only a small fraction of Australians earned anywhere near $400,000.
MORE: Lisa Wilkinson to be stripped of massive $23m record
Finder revealed half of Aussies had less than $1000 to their name in the bank.
MORE: Aus town’s secret cave homes exposed
Finder revealed the average Australian had $47,624 in cash savings, but the figures were skewered by some people with very high bank balances. In reality, nearly half of Aussies had less than $1,000 in their bank account, Finder noted.
Help us improve your reading experience
Got a minute? Your feedback will help us build a better experience for you.
Help us improve this page
English (US) · 