The amount in an average person's bank account varies significantly by country and demographic, but in Australia, the average savings balance is around $42,000, though the median is much lower (closer to $3,000-$15,000), highlighting that a few high savers skew the average; Baby Boomers tend to have the most, while younger generations have less, with many holding under $1,000.
Average Savings in Australia 2025. Australians have an average of $42,246 in savings, with Boomers leading the way with an average savings of $56,300. p.a. Welcome Bonus Rate for up to 4 months, then 4.35% p.a. Everyday Bonus Rate. No account fees.
A significant portion of Australians, around 40-45% (over 9 million people), have less than $1,000 in savings, highlighting widespread financial vulnerability due to high living costs, with many living paycheck-to-paycheck and facing major stress from unexpected expenses. This contrasts with median savings figures, where some reports show Australians having tens of thousands saved, though these averages are skewed by "super savers" and exclude superannuation.
So, if you have $10,000 saved up, you're ahead of the curve. And in general, $10,000 is a good starting point for many people, especially if you have clear goals and little debt. And there are steps you can take to maximize that money and save even more.
Data from the Employee Benefit Research Institute indicates that 22.1% of Americans have at least $100,000 saved up. Most people in this group have retirement savings that range from $100,000 - $499,000. Out of everyone in the study, 13.9% of Americans have savings in that range.
Most Americans have far less than $100,000 in transaction accounts (checking, savings, and money market)1. But it's not a lofty goal reserved for the ultra-wealthy or financial gurus. Even if you're juggling expenses on a modest income, some key mindset shifts and money moves could put this goal within reach.
Believe it or not, data from the 2022 Survey of Consumer Finances indicates that only 9% of American households have managed to save $500,000 or more for their retirement. This means less than one in ten families have achieved this financial goal. How many people retire with over $5 million?
Put aside just $13.70 per day, and at the end of the year you'll have $5,000; double that to $27.39 daily and you'll have $10,000 by year-end—and that doesn't include the interest you may earn. You can save money by making a budget, automating savings, reducing discretionary spending and seeking discounts.
Turning $10k into $100k in one year requires very high-risk, high-reward strategies like aggressive stock/crypto trading, flipping digital assets (websites/e-commerce), or launching successful online businesses (courses, dropshipping), as traditional investing yields far less; you'll likely need a combination of significant capital investment, rapid skill acquisition, strong market timing, and exceptional execution, accepting the high chance of significant loss.
Average Savings by Age in the USA. The Federal Reserve's latest (2022) Survey of Consumer Finances shows that the typical American household has an average savings balance of $62,410. But average savings varies greatly by age and number of people in a household. Here's what savings by age looks like.
The 27.40 rule is a simple personal finance strategy for saving $10,000 in one year by setting aside $27.40 every single day, which totals $10,001 annually ($27.40 x 365). It works by making a large goal feel manageable through consistent, small daily actions, encouraging discipline, and can be automated through bank transfers, with the savings potentially growing with interest in a high-yield account.
Yes, $600,000 can be enough to retire at 60 in Australia for many, especially if you're a single person aiming for a comfortable lifestyle, but it depends heavily on your spending, assets, and eligibility for the Age Pension. While some sources suggest $600k covers a single's comfortable retirement (around $52k-$53k/year), it's near the lower end, and couples might need closer to $700k for a similar standard, making financial planning crucial for a stress-free retirement.
According to a Dacxi survey 40% of Australians consider the upper class as those that earn more than an after-tax income of $150,000 annually. 33% apply a net worth lens to the definition and classify the upper class as those with a net worth of over $1 million.
The average Australian household carried $313,633 in total debt in June 2025, with the majority coming from home loans. Mortgages remain the dominant source of debt, while personal loans, car loans, and credit cards continue to add pressure on household budgets.
Any amount of cash could be considered a large or lump sum, but for the purposes of this guide we're talking about more than £120,000.
$500,000 in Australian retirement can last anywhere from 10-15 years for high spending ($40k-$50k/yr) to 20+ years if supplemented by the Age Pension and lower spending ($30k/yr), depending heavily on your age, lifestyle, investment returns (3-7% p.a. for 10-20 years), and if you qualify for the Age Pension. Expect 10-13 years at $50k/year or 17-20 years at $30k/year if you're 60, but combining it with the Age Pension at 65+ significantly extends its life, potentially covering expenses until 90-95.
The 7-3-2 rule is a wealth-building strategy highlighting compounding's power, suggesting it takes roughly 7 years to save your first significant amount (like a crore), then 3 years for the second, and only 2 years for the third, by increasing contributions and leveraging exponential growth as your money compounds faster. It emphasizes discipline in the initial phase, then accelerating savings as returns kick in, making later wealth accumulation quicker and more dramatic.
What is the 52-week money challenge? The 52-week money challenge could help you build a savings habit by putting away an amount of money that corresponds to the week you save it. So, start with $1 in week 1. In week 2, save $2. In week 3, save $3.
Pay Down High-Interest Debt
That is, the money you'd make investing that $10,000 would be less than the interest charged on your debt. Putting extra money toward paying down high-interest debt is financially savvy, assuming you've started an emergency fund.
I tell young people all the time, by the time you hit 33 years old you should have at least $100,000 saved somewhere. Make that your goal. That's the age when it's really time to start getting FOCUSED on saving. You want to be in a good place when you're 65, but it starts now!
Your $500,000 can give you about $20,000 each year using the 4% rule, and it could last over 30 years. The Bureau of Labor Statistics shows retirees spend around $54,000 yearly. Smart investments can make your savings last longer.
When asked when they plan to retire, most people say between 65 and 67. But according to a Gallup survey the average age that people actually retire is 61.
Typical lifetime payout rates at age 70 are about 5%–8% depending on carrier and terms. On $400,000, that's roughly $20,000–$32,000 per year for life, before Social Security. Favor increasing-income GLWBs when available so your paycheck can step up over time to fight inflation.
The 2022 Survey of Consumer Finances (SCF) 1 found that nearly 40% of Americans have no retirement savings at all, and among those who do, the median savings is only $86,900—far from sufficient to support even a modest retirement. Consider working with a financial advisor as you plan for retirement.