How much money would improve your life?

Share

Share

Many Australians dream of a financial windfall that would significantly improve their lives forever, but how much is enough?

In this special report, we ask over 2,000 Australians to tell us how much they need.

On average, around $760,000 is the magic number, but this hides some big differences depending on where you live, your age, gender, income and other factors.

According to NAB Chief Economist Alan Oster, “this life changing amount of money ranges from around $850,000 for those living in NSW/ACT to just over $170,000 for people in Tasmania”.

The range was also great in dollar terms depending on income. Very high income earners, perhaps accustomed to greater spending, require almost $1.5 million, while lower income earners need considerably less.

A similar trend was also evident among professionals and those with higher levels of education.

More surprising, given the cost of raising a family, the amount needed by those with children ($757,000) was very similar than for those without ($796,000).

Men ($814,000) require more than women ($703,000).

Australians aged 30-49 ($815,000) need the most to improve their lives, but particularly men ($1 million compared to just $640,000 for 30-49 year old women).

“Middle-aged men usually also have the highest debt to income levels and the highest levels of mortgage debt”, said Mr Oster.

Interestingly, despite households in capital cities generally having higher debt levels than those in regional areas, Australians living in regional cities ($835,000) needed about the same as those in capital cities ($794,000), but much more than those in rural towns and the bush ($530,000).

Read the full report here: Financial Freedom (Q4 2015)

Topics

SEE ALL TOPICS

Related Articles

  • Budget

Actions taken before 2030 critical to transition to net-zero global economy

Speaking in response to the 2024 Federal Budget NAB Group Executive Corporate & Institutional Banking David Gall said the Federal Government’s $24bn blueprint will play a critical role in transitioning to a net-zero economy and will help bring forward investment sooner.

  • 17.05.2024
  • Time to read 4 min read
  • Budget

Video: Federal Budget expert panel discussion

Nine journalist Deb Knight hosted a Federal Budget livestream event with our panel of NAB leaders and industry experts, unpacking the key announcements and delivering all the analysis, insights and key impacts.

  • 15.05.2024
  • Time to read 1 min read
  • Budget

2024 Federal Budget: NAB Economic Commentary

The NAB Economics team provides analysis and insights on the 2024 Federal Budget, including commentary on what it means for health, small and medium business, education and individuals.

  • 15.05.2024
  • Time to read 1 min read

Quick links

National Australia Bank — NAB

Sometimes When The Unexpected Happens, We Realise What We Truly Value. Whether A Home, Farm, Business Or Your Passion, NAB Is Here To Support You.

Business Research and Insights

For more business news and analysis, visit NAB’s Business Research and Insights.