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news.com.au 25 Nov, 2021 09:15 am

Australians still ‘persistently’ hoarding savings in the bank

Australians still ‘persistently’ hoarding savings in the bank
Some startling findings about how Australians are coping financially during the Covid pandemic have been revealed in a new report.

CBA’s head of financial wellbeing Ben Grauer said that indicated “a persistence of precautionary savings behaviour during the pandemic”.Overall, the report concluded the average Aussie had a financial wellbeing score of 50.“A range of macro and micro economic factors during the pandemic all help to explain this increased and sustained level of financial wellbeing compared to pre-Covid,” he said.The report is based on a Melbourne Institute scale comprising five major components that measure financial wellbeing: financial freedom, control, security, and meeting ongoing obligations now and into the future.

The Commonwealth Bank analysed its customers’ account data and found the median savings balance was down a mere $100 in September, compared to the same month last year when the health crisis was in full swing.But that average balance - not disclosed in the report - was still 66 per cent higher than in September 2019 before the health crisis erupted.

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