Savings may have skyrocketed over the course of the pandemic, but the cost of living worldwide has increased significantly. The average household savings among Organisation for Economic Cooperation and Development (OECD) nations are predicted to dip by 6 percentage points from 2020 to 2022, according to Finder's analysis of data from the OECD.
Key statistics
9th for predicted 2022 savings rate
9% of household disposable income will be set aside as savings
$5,000 in savings per Australian household by year-end
Quick summary:
- Australia ranks 9th for predicted savings, behind the US and Germany, but ahead of Canada and New Zealand.
- Households will save about 9% of their disposable income in 2022, higher than the global average of 7%.
- Australians savings rate dropped significantly from 15% in 2020.
- Aussie household savings average at around $5,000 in 2022, $3,849 less than they would have saved in 2020.
- Household savings are predicted to drop by an average of $2,947 across OECD nations.
Drop in Australian household savings
- Australian households are expected to save 9% of their disposable income in 2022.
- With an average disposable income of $58,143, this means that Aussie households are setting aside $5,000 for their savings in 2022.
- Although this ranks Australia in the top 10 savers according to the OECD, it's a significant drop from their actual savings pre-pandemic of 15%.
How Australia compares to the rest of the world
- On average, households in countries included in the OECD are expected to save about 7% of their disposable income in 2022.
- Leading the way are the Swiss who are forecasted to save a fifth (20%) of their household income. This is followed by Luxembourg at 17% and Sweden at 14%.
- In Australian dollars, this means the Swiss are saving an estimated $12,393 on average this year. Luxembourgers don't fall too far behind at $12,031, followed by the Swedes at $7,230.
- Countries and regions on par with the global average are Austria, Slovenia, Estonia and the Euro Area whose households are expected to save 7% of their income.
- On the other end of the spectrum are Polish adults who are predicted to have no savings this 2022. In fact, households in Poland may go into debt by 1% of their household income; the equivalent of -$331. Kiwis are also expected to go into debt by 0.2% or $121 and Italians round off the bottom 3 by saving just 1% of their income in 2022.
Global drop in household savings
- Globally, households are saving about 6 percentage points less of their disposable income now than they would have in 2020. In 2020, household savings averaged 13%, much higher compared to the predicted 7% for 2022.
- This means savings dropped by an average of $2,947 across the OECD nations.
- Ireland is expected to see the biggest drop in savings from 21% down to just 7%. That's equivalent to $6,815 less in savings than they would have in 2020.
- This is followed by the Czech Republic (-11% or $4,361), Italy (-9% or $4,201), Slovenia (-9% or $3,510) and Canada (-8% or $4,507). Meanwhile, Australians will see the 10th biggest drop at 7% or $3,849.
- Luxembourg (1%), Latvia (1%) and the Slovak Republic (2%) are projected to have the smallest drops.
More guides on Finder
-
Australian Unity Freedom Saver ($50,000 – $250,000)
The Australian Unity Freedom Saver account lets you earn a competitive rate on balances between $50,000 and $250,000. Learn more about this high interest savings account.
-
Australian Unity Freedom Saver ($250,001 – $500,000)
The Australian Unity Freedom Saver account lets you earn a competitive rate on balances between $250,001 and $500,000. Learn more about this high interest savings account.
-
Bankwest Easy Saver account
The Bankwest Easy Saver account offers a bonus rate for the first 4 months, then an ongoing standard variable rate with no conditions to meet.
-
Bank of Queensland Simple Saver Account
Check out out review of the Bank of Queensland Simple Saver Account.
-
Great Southern Bank Goal Saver Account (18-24 year olds)
The Great Southern Bank Goal Saver Account has an ongoing bonus rate on balances up to $50,000 for customers aged 18-24.
-
Virgin Money Grow Saver account
Earn 2.30% p.a. on your savings each month you make at least one deposit and make no more than one withdrawal.
-
Virgin Money Boost Saver (for 18-24 year olds)
The Virgin Money Boost savings account (for 18-24 year olds) offers bonus interest each month you deposit money and meet the purchase requirements. Here's how the account works and how to apply.
-
Virgin Money Boost Saver Account (25+ year olds)
The Virgin Money Boost savings account (for 25+ year olds) offers bonus interest each month you deposit money and meet the purchase requirements. Here's how the account works and how to apply.
-
Rabobank Notice Saver SMSF
Available to SMSFs, the Rabobank Notice Saver offers a high interest rate on your savings, but you’ll need to give at least one-month’s notice before you can withdraw your funds.
-
ING Savings Maximiser savings account
The ING Savings Maximiser is a high interest savings account with a competitive interest rate when you meet the account conditions. Here's how to earn the top bonus rate with this account.
Ask a question