How Much Money You Need To Save In Australia (AT EVERY AGE)

How much money you should aim to save at every age in Australia. Find out how much the average net worth of Australian’s is and what you should be aiming to save in order to retire early.
Cashback sites:
- Cashrewards: refer.cashrewa...
- Shopback: app.shopback.c...
Low Fee Stock Brokerages (My Referral Links):
- Pearler AUS Shares (1 FREE TRADE):
pearler.com/ho...
- SelfWealth AUS Shares (5 FREE TRADES): secure.selfwea...
- Stake US Shares (1 FREE STOCK): hellostake.com...
Best Book For Passive Investing: amzn.to/3fBs7At
My Camera and Recording Setup: amzn.to/2DJYeR2
Join The Passive Investing Australia Facebook Group: / passiveinvesting
Follow Me On Socials:
- Twitter: / okleahcim
- Instagram: / michaelko
Original videos by Graham Stephan and Andrei Jikh
- • How Much Money You Nee...
- • How Much Money You Sho...
What we’re going to do today is look into Australian net worth by age brackets, and see what average looks like in Australia, where you sit on the Australian net worth spectrum, and what to do if you’re slightly behind. And whilst it’s never a good idea to compare with others when it comes to money, as everyone’s situation is unique, it does at least give us some benchmarks to think about or goals to strive for if we are aiming to become financially independent. And at the very least give you some specific actions to take if you do find that you are slightly behind your own personal financial goals.
As the important thing to note here is that whether you’re fresh out of school, well into your career, or forging your path through life, it’s never too late to start saving or to check to see that you’re heading in the right direction.
Now calculating your net worth isn't really difficult. It's much easier than you think. All you need to do is tally up everything you own of value to calculate your total assets, these will be things like:
- non-financial assets, such as homes and their contents, land, and vehicles
- The value of any businesses you might personally own
- other financial assets such as savings, shares, superannuation accounts
And then add up the value of any outstanding debts or loans to calculate your total liabilities, which may include:
- mortgages
- investment loans
- credit card debt
- borrowings from other households
- other personal and study loans
Then all you need to do is subtract the total value of all your liabilities from your total assets. The total value is what is considered to be your personal net worth. Your total could result in a positive net worth or a negative net worth. If you’re in the negative net worth category, don’t stress too much, it’s alright. It’s typical for people who are early in their careers to have a low or negative net worth if they have student loans, or are new homeowners, or are just starting to save for the future.

[@peterernsteins5520]

As an Aussie it's awesome to be educated by another Aussie, mate you're setting me up for life. Cheers!

[@michael_ko]

love it

[@chriswilliams2061]

As an Aussie who has worked with a lot of pros both foreign and local including the great Nancy Lynn Lewis (who made me my first million btw), I can only say given how young you are, you are incredibly knowledgeable in this field. Kudus!

[@mezzi9736]

Yeah until the nukes start dropping

[@caelsalmond2365]

Just found your channel, glad theres a finance channel for australians, hopefully its worth it 👍

[@michael_ko]

Thanks!

[@Cha4k]

If your wage is $3800 a month then I would disagree that saving 50% is "really achievable by pretty much anyone". Certainly people can save A LOT more than $250 a month. But half their wages would be very hard unless they have zero debts, Dont need to travel to work, Have no children, Use very little power and eat very little food, or maybe live with their parents.

[@petersuvara]

Lots of investment advice from US, great to see Aussie stuff.

[@NathanLewis7871]

No need saving, investment is the deal thing.

[@Thompson7888]

Yeah getting reputable futures & investment in stocks.

[@thepotter867]

Are stocks really that profitable? Heard so much about the volatile market. I might be wrong anyway.

[@patriciacleveland2588]

@@thepotter867 Yes of course it is! But you have got to be more careful if you are inexperienced.

[@patriciacleveland2588]

Best go get yourself someone good you can trust or better still check out Sandra Yvonne Webster she's good too.

[@chantelleshannon2344]

Great video! I am happy that I found your channel. It helps to listen to a fellow Australian talk about money, as every country is different 🙏.

[@Siri_Duffa]

Great content Michael. Keep it up! Financial education should be introduced to students in high school as far as I'm concerned. I don't think people realise just how much better off they'd be if they started investing early on.

[@michael_ko]

Well said! I remember doing my first classes on economics and finance in university and how much of an eye opener they were

[@suphatrachaiyasit7531]

They don't want to teach it at school it's bad for the country if we all save our money they want us to spend every dollar it's good for the economy so instead of teaching us about something that's really important like how to manage money they teach us bullshit like science or history

[@mushy111]

Oh good, just turned 40 this month. $700k home with $34k mortgage left. On track 👌 Great content and so well presented btw.

[@multifxinc2561]

go invest with the company that he always talk about you will make more profits

[@mushy111]

@@multifxinc2561 I don't need financial advice, thanks.

[@multifxinc2561]

@@mushy111 welcome

[@ptj1ptj172]

that's great to know that you cleared off your debt fast. Are you a high income earner OR do you prioritise paying off loan at the cost of basic luxury like annual vacations, monthly fine-dining, gym membership etc. just curious to know??

[@gescyreuploads8464]

Great video! I'm Fourteen and 20 years ahead on my finances. just subscribed

[@michael_ko]

awesome job

[@evanever]

awesome job cockmaster122

[@putin4901]

@@evanever omg haha I just read his name

[@robsalvv5853]

Regarding the advice for a 50yo, it seemed a bit light on. Also, unless they’ve built up a sizeable discretionary investment/savings balance and are considering early self funded retirement pretty soon, moving to a more defensive investment strategy seems a bit too conservative. With preservation age being 60yo, they most likely are some 10yrs away from retirement. 5 - 7yrs is the average quoted time horizon for a growth focussed investment strategy.

[@videosLeezy]

Love the Aussie content! Very well articulated, keep it up!

[@A.Campbell]

Yeah, I'm in the bottom 1%. But I'm debt free and slowly building my wealth

[@michael_ko]

Awesome job being debt free, better than a lot!

[@suicine2859]

Thats a lie, the bottom 1% is in debt so if you debt free you not bottom 1%. Click bait.

[@passdasalt]

I agree, it's best not to compare yourself to others...except when you see the average Aussie's shockingly low net worth. Wow, I may actually be ahead of the curve. I'm suddenly feeling slightly better about my own meagre savings.

[@TimH767]

If the average 60yo NW is only $291k, that means average people don't own their homes at preservation age, since the average house value is well above that. That's surprising...

[@lachlanscheuber5983]

Good question. Was wondering whether or not these quoted figures included the place of residence.

[@junfang8]

Consider nearly 50% of Aussie don't have own home, even with mortgages

[@lueyR]

Definitely dosnt include houses . Most 60 year olds own their homes

[@anthonystanley8245]

Finally, an aussie version of savings by age for retirement. Great video and learning. Thanks mate.

[@zakatista1330]

The upside is that if you are elderly and poor in Australia, the government will pay for your aged care / assisted living. If you've served in the military, you probably qualify for medicare gold in old age.

[@putin4901]

It’s like the game of life the more money you have the better you are at the game

[@sjj7236]

What a great video, sage advice from someone so young. Looking forward to watching more on superannuation, early retirement and investing. Keep up the great work.

[@moonknight4053]

You could probly save half of yours income if you were paying board at youre parents, but if you’re out there renting…. You can’t save half unless your doing a side hustle is well like Uber eats or something

[@donaldlyons17]

Yeah but truth is if people live with multiple others it might be possible..... but yeah it is super special situation to save 50%.

[@Fraudemusic]

Just found the Graham Stephan of Australia! Excellent channel mate

[@michael_ko]

Thanks for the kind words :)

[@baysidelad1]

The Div 293 tax is an EXTRA 15% contributions tax for high income earners........AN IMPORTANT POINT!!!!!!!!!!!

[@chillikoala]

Thanks for the breakdown. It was a well presented video. The figures for 40s, 50s and 60s seem too low (surprisingly). Do they include super balances and property (such as PPOR)? If not, that implies that most people approaching "retirement age" do not own their own home and have very low superannuation balances.

[@rayb3000]

Hey hope u dont mind the comparison but you're like the Aussie Graham Stephen. U guys are on the same page so well done!!

[@michael_ko]

Not at all, thanks for the comment Ray!

[@noodlesniffer]

Thanks for the video! Would you be able to do an update for 2023?

[@pauloneill9078]

great advice! clear and concice, forget about those other dudes get more content like this and the subscribers will follow. loving your work, keep it up cheers!!

[@OilBaron100]

Great video. Commenting to pump up your video in the algorithm.

[@OilBaron100]

@Michael ko obviously a scammer with a fake account

[@TheAustralianHealthShow]

great work i subscribed thanks Michael

[@slowentropy4531]

Nice mate, i feel a bit better as I'm 38 and I've nearly paid off my house. I really feel like taking it a bit easier though as I've worked so so hard since I left school haha.

[@johnleslie7826]

Excellent presentation. Keep up the good work!

[@michael_ko]

thank you!

[@raymondtruong7996]

Hi, loved the video! Could you expand more on the private health fund and the Medicare levy?

[@rebekahrobertson7671]

I tuned out when you said the average 30 year old person can be investing 50% of their income. Let's say they're on $1k a week after tax. $500/week. So, $500 divided between shelter, food, transport, bills, communication, medications, insurance.

[@jaxamillian1]

You have to be diligent about saving. Thats really another topic completely separate from this video.

[@dazzafication]

I was just about to say how you can be the Graham of Aussie and wallah your first scene refers to him!

[@ArchieMorley]

Great content man, keep uploading!

[@dennisbenedictos3941]

Thanks for the video that is relevant for Australia.

[@richiesworld1]

Thanks for making this bro👍🏾

[@michael_ko]

No problem 👍

[@bendroege]

Hell yeah man, great breakdown super insightful

[@michael_ko]

Glad it was useful!

[@aussiejubes]

A video for older people (40+) who are starting from 0 with 0 net worth would be great. That's the story for a lot of women & anyone who hasn't had the greatest run in life. Also, where do we invest to get 8% interest?

[@oodleyboo]

such a great comment, I totally agree

[@FemmeNaty]

Ditto with the qbove

[@ilovegreen0150]

Especially women who give up work to raise kids. Now kids at school how to catch up quickly.

[@jj-if6it]

He means stocks (8% average interest)

[@leannemclean5549]

Absolutely Yes!!! Help for us divorcees at 50 starting over again

[@gracemaz3794]

Great content! Love this channel!

[@michael_ko]

Much appreciated! Thank you!

[@cynthiakk5966]

I love your video and you are so young. However, your videos are full of knowledge.

[@matthewthehawk1066]

Thanks Michael nice video

[@paulking5199]

I find it surprising how low the Australian savings are. I just finished my PhD (age=25) and I have $50k in savings. I just piled up money from scholarships, small work gigs, tutoring etc.

[@jenduck5520]

Savings =\ net worth

[@vidb5409]

ya but if you have kids and buy a house, that would easily go down to negative net worth.

[@jacintatate]

Thanks for the video, + really great content. I'm lucky my dads a financial planner so I've never had trouble saving and investing, but so many of my good friends spend money excessively.

[@alyssajenaway3781]

Brilliant tips!

[@jennerbrandon1074]

You know he is reliable because of the Patagonia jumper

[@renocamilleri2310]

Is there a comparison of age groups to show average wealth of people who work? The Unemployed and the disability sector would skew the figures.

[@alternativesolutionau2826]

Saving and growing your savings are a must!

[@pauls8456]

Wow a lot of assumptions in there…. No mention of children that cost $300K+ each, I wonder what rent will cost in 25yrs if he hasn’t bought a house, no consideration of partners, divorce, recessions (which no younger person has experienced) no mention of chosen or enforced career changes. I would say at least 3 of these things will impact a person of this age and another 3 not even considered or predictable ….

[@donaldlyons17]

Yeah they never assume stuff comes up... but as we can see from KZbinr thinking they don't have those types of problems so they assume others don't either.

[@sagelyfinancial]

Pre-smashed the like button as it's a good topic to cover. Good editing as well, and love the video and light quality, you got a sub mate! What software did you use to move around the different parts of the pdf?

[@amir.estaris]

Subbed!! You’re getting more and more comfortable each video. Quality content too! More people need to think about finances as a priority, especially with how this year has played out! Can never be too prepared or too educated. Peace ✌🏽

[@michael_ko]

Thanks Amir! I agree ☝️

[@ethantehfitness]

Good video man, appreciate it

[@CAROLXINHE]

Good content!

[@michael_ko]

Thanks for watching 🙏

[@TheVeganTravelShow]

Great content. Thanks!

[@wealthelife]

@4:00 'note here than I am using median rather than mean'.... and then the displayed text shows "AVERAGE = -$2,430" (and average is the mean, NOT the median)! ;)

[@hughle9913]

median in statistics atleast is still considered like the mean, a measure of average

[@thedefendersrace]

Thanks mate. Good content. Do you think we should exclude our own home in the networth calculation if we use that figure as a target for financial independence?

[@japanesefunnyshorts8584]

$194K at 50??? How in the world are you going to retire early?? That should the net worth at 30!

[@janebaker4912]

Great video

[@davidg393]

Strictly speaking it is not true that 25 times income in savings will last forever. Research shows that with 50-50 bonds and shares there is 96% chance it will last 30 years, which is okay for retirement at 60 years but not enough for someone to retire, at say, 30 years of age. Global shares in inflation adjusted returns earn 5.8% on average historically. Bonds, after tax and inflation are slightly negative over past 50 years. So, you could only spend half 5.8% (2.9%) or possibly even less for it to last forever and that is assuming zero cost of running the investment funds. If you are not earning any more money, the conventional wisdom is to only have around 50% in shares, in case sharemarket crashes and loses 50%+.

[@4LayersOfStrength]

A 🏠 or 🚗 with an outstanding debt/loan should be considered a liability not an asset❗❓

[@carmelbrain7399]

What about frequent market downturns ?

[@ryansamarakoon8268]

Is it possible to add your sources into the video description? Curious to know how you got all of these numbers 👀

[@anewcreature7]

Good video! Is the average net worth you’re talking about includes super?

[@SamsAdventures247]

Good channel keep it up

[@andymacmac9151]

Do you have any sort of financial advice qualifications? I’d be concerned if some 50 year olds start moving from equities into bonds….

[@MyTk89]

Well, I am broke :). My networth is - 250k at 32, from Sydney, well that's depressing. Great.

[@JackyTMusic]

Tbh dont even bother trying to get out of that situation into what the middle class profess as 'comfortable' at this stage. Def try to better your life quality but dont chase a home, higher earning power, high return equities etc. The game isnt for us folks who are in our 30s, have worked all our lifes for minimum wage and are so far behind. Accept you won't be as comfy as middle Australia due to systemic factors and instead work enough to enjoy some of your time and help others with the rest of your time. We will soon be 42 and will still be so far behind middle Australia my friend, so dont even bother with these paths. When I got a chronic illness thst wrecked me in every way including financially at age 27 (now 34) i tried so hard for 5 years to fix everything to get ahead but its not plausible without reducing life quality as opposed to making it better. Maybe by 60? But what a waste of your precious life. Anyway, most people here applauding these kinda breakdowns of paths dont know what its like to be the 20% of Aussies he mentioned then dismisses n forgets we dont have 'chosen careers', we have subsistence earning jobs and people to look after etc beyond our means. Its a slap in the face the bottom 20% is forever ignored in these vids re a path forward but unsurprisingly its because there really isnt a path to get to retirement and not have struggled for 30 years from now for so little. Australia needs us to exist, but wont reward hard work. It rewards hard work + capital. The middle class reign. Hope this helps some way to make you feel brighter Taurus. This year, after 5 years of working so hard to fix the financial issues i have, ive gone the opposite way and now only work 32hrs a week and have alot of time to enjoy life and help others. Meh to 60 with a house and a comfy car and retirement. Barely anyone i know from my class structure will have that in Australia, theres nothing wrong with us mid 30s, the systemic issues are far stronger than our desire and work ethic. Dont risk what you have now, both time and capital in tryna beat the mean. Just enjoy what you can coz yeah illness hit me n god knows what else is around the corner for us good and bad :)

[@BARDOT93]

Can you please clarify - so the average 30 year old would have a positive net worth, including a house they own that's fully paid? Thanks

[@rockymin3474]

Do I need $60k X 25 = $1.5M to retire? Is this exclusive of house of residence?

[@teahurumeaclem9146]

Pretty scary stuff, I always wonder how bad New Zealand's is! Awesome vid though

[@michael_ko]

Thanks for watching! Agree, the average Aussie is not very good at saving

[@anoopraman3978]

Best practical recommendations.. Thank you...

[@petersuvara]

Anyone who does voluntary contributions into your super into a good fund, there’s no excuse to not have a minimum of 100k net worth at least.

[@rajTrondhjem10]

Great video mate.. amazing content. Is that a date just on your wrist?

[@michael_ko]

Thanks appreciate it! yep it is :)

[@rockymin3474]

What is your profession?

[@bengrin7822]

How the heck do you go 8%

[@putin4901]

Thank you good sir

[@jbyrne8977]

Who is in a position to save 50% of their income?! If you are in that position, you could just as easily half your worked hours and 'retire' from full time work. Needless to say this is well beyond what is achievable for most people.

[@jaxamillian1]

You would be suprised what's possible when you really do the math's on it. If you want flashy things, lots of vacations, nice cars etc you have no chance however. But it can boil down to very simple things like filling up a water bottle at a tap rather than paying $3.00 from the store. Really really adds up.

[@jbyrne8977]

@@jaxamillian1 my issue with this is that it is actually not possible for alot of people. You can't tell people to live on the streets so they can save 50% of their small income. For those earning maybe 60k+ and don't intend to own a home, it is probably possible. For those earning less, not possible without being homeless. For those that want to own a home it's not feasible. That said I have been wrong in the past.. I own a home when I never thought it would be possible. But without doubling my income it's not possible to save 50%. Kids and mortgage are not free. Point taken though, unnecessary spending adds up quickly and often goes unnoticed. Funny how people spend inline with their earnings and consider it essential, when previously they would have considered it a waste.

[@coopsnz1]

Excise taxes kills you in Australia , buy a Mercedes c63s the government pockets $70000

[@suphatrachaiyasit7531]

Keep it very simple just put an extra 10% above what your boss does into your supperannuation from the day you start work 30 years later you will have over a million dollars it's so easy and so simple no won does it

[@lindam.1502]

How can anyone save 50% of net wages AND buy a house? Also unsure as to why super savings are not counted?

[@ericboxer3053]

3 million to be in the top 20%..that's a lot to be top 20..in the US thats probably top 5% or maybe even higher

[@johnathanjoestar7129]

For people living in Australia. Thank you

[@chechennyboiiy]

i am -$35,000 from student loan officially lower than 0%

[@jameshabib9277]

Which compound interest calculator website are you using ?

[@putin4901]

I’m 14 and I am more wealthy then the average 20 year old les gooooooo

[@tixchicken]

how is 30k net worth at age 30 even possible you'd have at least 5-10years of work for a bit of super balance and high % should be paying off a house...mind blown

[@multifxinc2561]

go invest with the company that he always talk about you will make more profits

[@tixchicken]

@@multifxinc2561 no im just over 30 and have 880k networth im saying how can you only have 30k at age 30

[@multifxinc2561]

@@tixchicken lol people have that .i know i did have this much last two years but thank God i'm blessed now

[@multifxinc2561]

@@tixchicken stop saving your moeny in the bank invest with a company .you will make more money when you do that. and it's more safe.invest with this tradingfxstation company

[@multifxinc2561]

i have made over 400k within two years of my investment and more safe for me .

[@JohnSmith-sj2dk]

40k*25 = 1 mill, unlikely i and my wife will have that by 67

[@johnwurf9016]

1. it's average HOUSEHOLD networth

[@MrSopeas]

Are the median net worth you quoted for each age group inclusive of super?

[@michael_ko]

Yep, also inclusive of HECS as well

[@lindam.1502]

How could it be??

[@agentsnorlson7913]

@@lindam.1502 Late reply, but because it IS an asset, albeit one you access after a certain age

[@leannemclean5549]

A million dollars at retirement! Yikes i’ve only got 500000 and 13 years to go

[@dannnsss8034]

Average networth of an Aussie is only $31k???

[@samueldanby]

Saving half your income?! brah I'm all for saving but for a lot of folks that's just not possible.

[@ReadAloudRealm]

No way the bottom 20% have 35k each lmao. Surely it's negative

[@multifxinc2561]

go invest with the company that he always talk about you will make more profits

[@coopsnz1]

You need to he a multi millionaire to retire self retired in Australia... Better off living in USA middle class & upper class

[@WiFiTubeTV]

8%? wow, that's a lot since in the past 20-30 yrs it has ben around 4%

[@robsalvv5853]

I think that $500 a month is going into a market index ETF. That’s about the average ASX return over the last 10yrs… otherwise it’s a highly unlikely return from bank sources.

[@bolingerneurenburgh6177]

Most of this is just cookie cutter advice that doesn't help much and tries to flog ETF's.

[@jimmyjamjar10101]

Have you got any tips that differ? I agree this video is nothing new...

[@coopsnz1]

$300000 net worth living in Sydney im 33 yrs old, my savings $200000. If I lived in USA where there no federal sales tax & excise taxes why buying products & cars very cheap ??? I would be a millionaire now saving $100000 a yr

[@noahremnek3615]

Cars are subject to state and local sales tax. However cars are cheaper in the US than in other countries due to lower tariffs.

[@coopsnz1]

@@noahremnek3615 because there no federal sales tax in usa

[@abidrahman7253]

Does superannuation count in the median net value?

[@balkar83]

Yes

[@phantom11752]

Jesus, my net worth is $200000 at 36 and I still feel poor

[@moonjincarolkim3772]

I wish could have this channel with Korean interpretation. I blamed myself on my English level !!

[@bobtailsquid]

So 89K net worth is good for a 23 year old

[@chengganal112]

New subscribe hehe

[@michael_ko]

🙌

[@petersuvara]

I was -500k at 30 after my business failed 😬

[@multifxinc2561]

go invest with the company that he always talk about you will make more profits

[@JackyTMusic]

'Your chosen profession' lololol who serves your food and delivers your mail? We exist dude. All of these channels mentioning the 20% of Aussies with nowhere near a 8% ETF or property being worth it/plausible but then defaulting to the middle class mean everytime to articulate any path that isnt "give up n enjoy rent n pay check to pay check".

[@b_to_the_b]

WRONG 😑

[@GoldcoastSurfCam]

Agreed.