Shock stats reveal Aussies struggling to save for emergency fund

New research has revealed many Australians are living on the edge of financial crisis, with some having no money to fall back on in case of an emergency.

A shocking study has revealed just how many Aussies are living on the brink of financial crisis, with as little as 15 per cent having no money saved for an emergency.

The statistics cut an alarming new portrait of the country’s cost of living crisis, as Australian families feel the pinch of rising interest rates, grocery prices and electricity costs.

In a survey of 1003 adults, financial comparison website Compare the Market found 15 per cent had no funds tucked away to fall back on in hard times.

The data showed, on average, Australians had $19,998 in emergency savings.

But Compare the Market’s Natasha Innes said this average “varied greatly” between the different generations surveyed.

Compare the Market’s survey of over 1000 Australian adults found 15 per cent had no money tucked away in case of an emergency. Picture: Supplied

“There’s no denying that it’s costing Australians a lot more to live than it has in the past, but it’s concerning that such a large number of us appear to be living cheque to cheque,” she said.

On average, those aged between 18-25 (Gen Z) had as little as just $1019 in emergency savings.

“This lower savings amount makes sense, given that many Zoomers are fresh out of school, studying full-time or juggling work and education commitments,” Ms Innes said.

“Similarly, for those who’ve recently moved out of home, they’re likely buckling under the pressure of rent increases and rising costs across the board.

“It’s quite a difficult time for people to save right now.”

The average emergency fund savings increased to $20,746 for Millennials and $23,405 for Gen Xers.

Compare the Market’s findings determined the Baby Boomer generation had the most money saved for emergencies, with the average figure standing at $23,504.

“Without an emergency fund, many Australians could find themselves swimming in debt or taking out credit cards or loans with high-interest repayments,” Ms Innes said.

The research comes after the Reserve Bank of Australia last week delivered its 12th rate hike – raising the official cash rate by another 25 basis points to 4.1 per cent.

Finder estimates this will set the average Australian back another $1200 on their loan repayments.

But RBA governor Philip Lowe provoked outrage the following day by suggesting people cut back on spending or “work more” to cope with the rising rates.