- 52% of households are saving less
- 39% of households are saving the same
- Only 9% of households are saving more
There are a load of very interesting statistics that have come out of this study, one of the most telling ones is that we used to save more, way back in the eighties. The consumer boom of the last ten years was not a real boom but an artificial one fuelled by credit extension and cheap money. Now we have to pay the price. New data from the Reserve Bank shows that less credit is being extended. This may signal the return to sanity that has been long overdue.
There is some good news. The kids know better. Often the kids just think they know better but in this case it is true. For Generation Y, those born after 1980, saving is a much higher priority than the generations before them. No-one wants to live out the last years of their lives on handouts and pet food. Generation Y is much more worried about the future than previous generations, and they are acting accordingly. So plan for your retirement now and get a savings account or few.