Australians are squeezing more savings out of their banking and utilities products as the cost of living bites, according to new research by comparison website Finder.
The research shows nearly half of Australians (47%) have switched at least one financial product over the past six months.
Gen Z are the nation’s keenest deal-chasers, with 71% having switched at least one product, followed by millennials (59%). In contrast, just 20% of baby boomers have switched a provider in the past 6 months.
Taylor Blackburn, personal finance specialist at Finder, said Australians were being forced to take action on their finances.
“Rising interest rates, energy prices and the general cost of living are driving Australians to squeeze more out of their banking and utilities products”, he said.
“Many have realised that some savvy swaps – like switching energy providers or cutting down on subscriptions – could save hundreds of dollars a year.”
Energy switching is on the rise, with the percentage of Australians who have switched their energy plan in the past 6 months up to 16%, according to Finder’s Consumer Sentiment Tracker (CST).
That’s the equal-highest this figure has been since the CST began in 2019.
Gen Z (22%) and millennials (20%) are the most likely to have changed their energy plan recently, compared to just 7% of baby boomers.
Blackburn suggests it is easy to see if another provider could offer a better deal, simply by putting your usage data into a comparison site, where you can see all available offers that might work for you.
Refinancing is another way to make some handy savings, and this year it has hit record levels, the survey showed, with millennials leading the charge.
Nearly one in six (15%) mortgage holders have refinanced their home loan in the past six months, up from a low of 9% in January this year.
This figure jumps to 23% among millennial homeowners – nearly one in four and close to double what is was in January.
According to ABS figures, the value of refinanced home loans reached $20.3 billion in June, a record high and 7% increase on the previous month.
Blackburn said younger homeowners typically have the most to gain from refinancing.
“They tend to have lower incomes – so every little bit of savings makes a huge difference to their household budget.
“We’ve seen record numbers of first home buyers enter the property market in the past couple of years, many of whom hadn’t factored in rate rises.”
Australians are also looking more closely at their super funds than they have in the past, it seems. According to Finder’s research, more than one in ten Australians with super (11%) have switched their super fund in the last six months, a near doubling from just 6% in March this year.
For Gen Z, that figure climbs to more than one in five (21%).
The median growth fund is estimated to have declined 5% through the financial year, according to Chant West.
Blackburn said while growth has slowed over the past year, super is a long-term investment, so it’s not worth stressing over short-term losses.
“That said, not all funds are created equal. Beyond performance, fees can really add up if you are in the wrong fund.
“Compare super funds to find one with a balance of good long-term returns, low fees and any ethical considerations that are important to you,” Blackburn concluded.
