Monday, 31 July 2023 – More Australians are currently saving for a major expense or purchase than they were last year, according to new research from Australia’s biggest financial comparison site, Canstar. 

• Canstar survey shows a growing number of Aussies are saving for a major purchase or expense this year compared to 2022 
• More Australians are saving this year for travel, holidays, and buying property and fewer are saving to build up their emergency fund
• Canstar explains there is a case of two-speed savers with some saving for survival and others saving to sustain their goals

The Canstar survey of over 9,500 Australian adults found 71% were currently saving for a big purchase or expense. This is an increase from 66% last year and comes at a time when the cost of living and rising interest rates are grappling with household budgets. 

More Australians are saving this year for travel and holidays, and buying property, while fewer are saving to build up their emergency fund, buy a car or purchase household goods.

The case of two-speed savers: survival versus sustaining savings goals

“More Australians are saving in 2023 than a year earlier with holidays and buying property gaining greater momentum while saving for an emergency fund has come off the boil ever so slightly and buying a car has taken a back seat,” says Mickenbecker.

“Mortgage holders account for the biggest increase in those saving for big-ticket items this year. Higher loan repayments and tighter finances have likely left many borrowers with limited capacity to save, but they are hanging in there and hopeful to achieve their goal, even if it is just survival for many.

“Amongst mortgage holders, travel and holidays are the top savings motivation, which is no surprise now that the shackles are off, but the proportion of borrowers saving to build an emergency fund is well up. For some borrowers interest rate increases have been water off a duck’s back, while others are in severe stress.

“The slower-than-expected June quarter inflation figure gives hope that the Reserve Bank will pause cash rate increases in August. The annual inflation figure of 6 percent is still a million miles from the target 2 to 3 percent band, but if this quarter’s 0.8 percent is maintained we will be almost there. 

“An interest rate pause would be very welcome respite for borrowers already facing repayments up by almost 60 percent over the past 15 months. But with 39 percent of borrowers saving to build up an emergency fund, they are taking nothing for granted and are watchful for further rate hikes.

“Mortgage holders are far less likely to be saving to buy a property, having little appetite for piling more high-cost debt on top of what they already have. But those without a mortgage are still saving for the day they can buy a home, having put that plan on hold over the past year with first homebuyer participation remaining subdued. With the potential for the cash rate to remain on hold, that day may be one step closer.”

Top savings account on Canstar.com.au

To compare over 820 brands across more than 30 finance categories including savings accounts, home loans, and more, visit www.canstar.com.au.