Savers increase their lifeline
Australians have been busy bulking up their savings to make sure they can live off them for longer if uncertain times strike again, according to a survey from RaboDirect.
At a national level, the average savings buffer increased by 43 days last year, giving people at least an extra month to live off in the event they lost their job.
The survey shows almost a third of respondents have a savings safeguard that would last them at least seven months if they had to live off it — up from 19 per cent in 2012 and 29 per cent last year.
RaboDirect's group executive manager Greg McAweeney said the findings paint a much rosier picture of the nation's savings habits compared to one year ago when almost half of Australians only had one month's savings or less worth to live off if they lost their job.
However, he added it isn't about focusing on the negatives but about positively planning for the future.
"When viewed on a global economic scale, Australia came out of the financial crisis looking pretty good, particularly compared to parts of Europe and the United States," McAweeney said.
"That being said, we saw the national unemployment rate rise to 5.8 per cent in November 2013 — which begs the question, are we out of the woods just yet?"
According to the survey, the top three reasons for saving are: to feel more comfortable, to save for a holiday and to have money in case of emergency.
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