Australians say they would need a windfall almost eight times the average national lottery jackpot before they would think about taking an early retirement.
According to a RaboDirect survey, the average Australians said a minimum windfall of $6.9 million – almost eight times the average Oz Lotto jackpot – would mean early retirement.
The figure for Gen Y to retire early is even higher – they would need $10.7 million to feel financially comfortable enough to stop working.
The research also shows Gen Y – often touted as being free and easy spenders – put being financially well off as their top goal in life and are the strongest savers compared to other generations.
But RaboDirect’s group executive manager Greg McAweeney said people should not wait around for a lotto win but have a sound financial plan.
“We know that being rich is often an aspiration for many, but the question is, what is the best way to build your wealth? If you consider that your chances of winning Oz Lotto are around one in 45 million; you’ve got more chance struck by lightning or of being an astronaut than you do of winning the grand prize.
Aussies spend a “whopping” $20 billion each year on gambling, said McAweeney.
“Imagine instead if that money was put into a true high interest savings accounts, earning above 4% interest per annum – you could see the benefit of compound interest and would literally make money on your money as the interest accrues. Within no time you could be on that dream holiday or buying that luxury boat.”
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- 30% of Gen Y said being financially well off is their number one goal in life, compared to 21% of Gen X and 17% of Baby Boomers.
- Gen Y said the amount they would need to acquire to give up working is $10,746,569.
- 38% of Gen Y said they would not give up working no matter how much money they had – this compares to 33% of Gen X and 29% of Baby Boomers.
- Gen Y are the strongest savers, 62% are saving something each month. Looking for saving strategies is the most popular financial advice Gen Y seek online.
- Gen Y are most likely to use track income and spending on a budgeting app (14%), maintain saving accounts for specific purposes (42%) and also look online for saving strategies (39%).