Australians now think they need to earn significantly more than the average wage to live comfortably.
Aussies say they need to be making $152,775 per year to cover the basics of life, financial comparison group Finder has revealed.
Australia’s average, full-time salary is $102,742.
Finder personal finance expert Sarah Megginson said unaffordable housing and the cost of living crisis had redefined salary expectations.
‘A $100,000 salary, once a benchmark for comfortable living, now often feels more like a necessary starting point, especially in major cities,’ she said.
‘Persistent inflation and a dramatic surge in property prices have reshaped perceptions and many people now feel that a low six-figure income no longer provides the same level of financial stability it once did.’
Gen Z adults born from 1997 onward believe $177,212 is an adequate salary, while Millennials, born from 1981 to 1996, think $152,402 would meet their needs.
Generation X, born from 1965 to 1980, regarded $148,602 as good compared with $126,938 for Baby Boomers, born from 1946 to 1964.
Finder personal finance expert Sarah Megginson said unaffordable housing and Australia’s cost of living crisis had redefined salary expectations
But younger Australians are even more demanding about adequate pay level (pictured are young women at Sydney’s Royal Randwick Racecourse)
The survey of 1,012 Australians, taken in January, canvassed views on how much people thought they needed to earn to pay the bills without being financially stretched.
When it came to a comfortable salary that can pay for extra luxuries like an occasional overseas holiday, Australians were a bit more ambitious, regarding $164,577 as the benchmark wage.
Gen Z regarded $198,880 as the pay level to live more of the better life, compared with $176,150 for Millennials, $161,231 for Gen X and just $106,474 for Boomers.
Ms Megginson said Australians at all income levels needed to reconsider their unnecessary spending, from streaming TV subscriptions to restaurant meals.
‘If you feel like your money isn’t going far enough, it’s time to take charge,’ she said.
‘Start by looking at your bank account and credit card statements to see where you spend your money and what you can cut back on.
‘Simple things like stopping subscriptions you don’t use, less impulse buys, and cooking at home more can save you money quickly.’
Services inflation is still a problem in Australia, even though petrol and electricity prices have come down, thanks to $300 power rebates from the government.
Insurance costs like year climbed by 5.4 per cent, or by more than double the overall headline inflation rate of 2.4 per cent.
That makes switching providers the best way to cut back on costs.
‘Check if you’re paying too much for things you need, like electricity, insurance, and your phone plan,’ Ms Megginson said.
‘If you haven’t changed companies in the last year, you’re probably paying too much and there’s a good opportunity to save some money there.’
