New findings have shed light on the financial preparedness of Australians, revealing that many lack sufficient savings for unforeseen emergencies.

A recent report from ING highlights that only 22% of Australian adults have enough savings to cover three months’ worth of expenses, while approximately 20% have less than $1,000 in reserve.

There is a noticeable disparity in savings across different age groups. Generation Z, as one might expect given their relative youth, has the lowest savings, with most possessing less than $10,000 in total.

The study also indicates that Gen Z is the generation most inclined to associate higher income with increased happiness. About 57% of Gen Z holds this belief, compared to 55% of Millennials, 39% of Generation X, and just 23% of Baby Boomers.

“We recognize the financial challenges facing Gen Z in the current economic climate, but it’s encouraging to see their enthusiasm for securing their financial future,” remarked Bowen.

“This generation has unprecedented access to wealth-building tools, resources, and platforms,” Bowen added.

“And it’s interesting to see that while the research shows Gen Zs believe earning more money equals more happiness, that’s not at the expense of their mental health and wellbeing, as 59 per cent would take a pay cut for a job that is less stressful.”