Financial Tips for Singles in Australia, by Generation
Being single means your financial plan rests entirely on you—no partner's income cushion, fewer shared expenses, and more responsibility for your future financial security. But it also means you get complete control over decision-making. The best strategy largely depends on your age, life stage, and the generation to which you belong. Below, I break down key financial challenges and priorities for each age group/generation, as well as what singles in each bracket should focus on.
Generations / Age Groups Covered
- Gen Z (≈ ages 18-29)
- Millennials / Gen Y (≈ 30-44)
- Gen X (≈ 45-59)
- Baby Boomers / 60+
Key Data & Context
Before the tips, here are some of the facts to understand what singles face now.
- Gen Z in Australia carry more personal debt than older cohorts. On average, Gen Z have about AU$8,188 in personal debt, versus non-Gen Z average of ~$6,730. (ASIC)
- Many Gen Zs also have very low savings: 25% have less than $1,000 in savings; 8% have zero. (ASIC)
- Across Australia, personal debt excluding property is rising: about 35% of Australians hold such debt, averaging ~$15,179. Gen Z and Millennials have significantly more than older generations. (Canstar)
- Savings by age: Finder reports average savings for Australians are ~$37,408, but broken down: ages 18-26 much lower (≈ $20,160), ages 27-41 roughly $36,214, older groups higher. (finder.com.au)
- Superannuation (retirement savings): ASFA data (2025) suggest for comfortable retirement, singles will need in super around $595,000. Currently average super balances are typically far lower for younger generations. (qsuper.qld.gov.au)
These numbers show that young singles often start with debt, low savings, modest super; older generations have more in savings and super but may carry mortgages or vulnerabilities if finances are mismanaged.
Challenges & Priorities by Generation
Below I summarise what singles in each generation tend to face, what they should prioritise, and actionable tips.
| Generation / Age | Key Challenges & Priorities | Recommended Strategies |
| Gen Z (≈ 18-29 yrs) | • High cost of living (rent, transport, basics) eating into ability to save. • Student / HELP / FEE-HELP debt. • Low emergency buffer; many have negligible savings. • Lower financial and investing literacy; often reliant on credit / Buy-Now-Pay-Later (BNPL). • Planning for long-term goals feels distant: home ownership, retirement. | Saving: build an emergency fund of 3-6 months of essential expenses. Automate saving even small amounts. Cut discretionary spending in tempting but non-valuable areas. Debt Management: prioritise paying down high-interest debt first (credit cards, BNPL). If possible consolidate HELP / student debt strategies. Avoid accumulating new unnecessary debt. Investing / Super: start contributing to super early; consider whether extra voluntary contributions make sense. Use time-on-your-side to tolerate higher risk in growth assets (shares etc.). Learn about investment fundamentals—diversification, risk vs reward. Planning for Future: set concrete short, medium and long-term goals (e.g. saving for deposit, travel, career development). Get basic insurance where needed (e.g. income protection, health). Consider talking to a financial adviser / using tools to understand where you need to be in super. |
| Millennials / Gen Y (≈ 30-44 yrs) | • Peak of many expenses: housing (mortgage or rent), possibly children, career building. • Pressure from cost of housing deposits; inflation and interest rate fluctuations. • Savings might have started, but gaps in super / neutral risk in retirement planning. • Balancing present lifestyle desires (travel, experiences) vs future needs. | Saving: aim to increase savings rate; possibly set aside more than minimal emergency buffer. Budgeting becomes more critical. Reassess recurring costs (subscriptions, insurance) regularly. Debt Management: If holding a mortgage, evaluate whether extra repayments make sense vs investing. Prioritise paying off high-interest debts. Use refinancing if rates are favourable. Investing: Likely to have more disposable capacity; consider diversified investment outside super (shares, managed funds, property if fits). Understand fees and tax in super; consider consolidating super accounts. Planning for Future: define retirement savings target; make mid-career catch-ups. Review insurance, estate planning, will. Also plan for possible life changes (cost of children, caring, partner status). Risk Management: ensure you have appropriate coverage (life, disability, health) especially if you’re sole earner. |
| Gen X (≈ 45-59 yrs) | • Many still carrying mortgages or debt from earlier life. • Approaching retirement; less margin for poor returns or shocks. • Some may have caring responsibilities (children, aging parents). • Concern about whether super will be enough; possibly under-saved. • Inflation and interest rates impact cost of servicing debt. | Saving: shift focus more to preserving capital and ensuring stability. Increase contributions to super while you still can. Consider catch-up contributions. Make sure retirement buffer is growing. Investing: reduce risk exposure gradually; ensure diversified portfolio that can protect against market downturns. Consider more conservative growth assets. Debt Management: aim to eliminate or reduce non-mortgage debt. Consider whether accelerating mortgage payoff is possible without compromising liquidity. If mortgage is variable, assess refinancing. Future / Retirement Planning: define realistic retirement age and lifestyle; run projections. Plan for health costs. Consider downsizing / equity release if needed. Ensure you have wills, powers of attorney etc. Tax & Estate: seek professional advice on tax-efficient ways to take withdrawals or manage assets. Also plan how assets will be managed or passed on. |
| Baby Boomers / 60+ | • Often assets in property and super, but sometimes with debt (mortgages or other). • Outliving savings is a real risk; inflation, healthcare costs, unexpected expenses tend to rise. • Income often fixed or reduced; ability to take risk lower. • Single seniors may have fewer social supports or living alone; more vulnerable to shocks. • Government pension / age pension eligibility and asset tests matter. | Saving / Cash Flow: ensure secure income streams; minimise ongoing liabilities. Review living costs; move to lower cost housing if needed. Keep emergency fund accessible. Investing: favour income-producing investments (bonds, high-quality dividend paying shares, possibly annuities) rather than big growth bets. Preserve capital. Debt Management: pay off outstanding debts, especially those with high interest. Avoid taking new debt unless absolutely necessary. Planning for the Future: make sure super and investments are arranged in ways that balance income, tax, and estate needs. Engage professional advice: tax, estate, aged care. Keep wills, powers of attorney, health directives updated. Risk & Insurance: maintain or review health insurance; consider cover for long term care; protect against unexpected large expenses. |
Practical Tips Across All Ages
Here are strategies that are helpful for singles regardless of which generation you’re in, though how you implement them will vary.
- Emergency Fund First
Something like 3-6 months’ living costs (or more if your income is volatile) should be in a safe, liquid vehicle. This helps avoid having to rely on high-interest debt when something unexpected happens (job loss, medical, car repairs, etc.). - Budgeting and Spending Awareness
Track your spending. Use tools / apps. Identify (and cut) waste: subscriptions you don’t use, costly habits, high fees. Adjust your life to your priorities. - Debt Management Principles
- Prioritise high interest / revolving debt first.
- Use snowball or avalanche methods (pay smallest debt first for momentum or highest interest first for cost-saving).
- Avoid new debt where possible, especially expensive consumer debt or unnecessary BNPL if you can’t pay off quickly.
- Refinance if rates are high and options exist.
- Investing & Superannuation
- Understand your risk tolerance and time horizon. Younger people can afford more risk; older should move toward more stable income-oriented assets.
- Regularly check your super balance; make additional voluntary contributions if possible, especially when you have spare capacity. - Diversification matters; avoid being overconcentrated in one asset or fund. - Understand fees, tax implications, potential returns.
- Long-Term Goals & Planning
- Define what “comfortable retirement” means for you (location, lifestyle, travel, health). Use super / retirement calculators. - Estate planning: will, health-care directives, powers of attorney. - Insurance: health, income protection, life (if you have dependents or expect large obligations). - Tax efficiency: know about deductions, offsets, what you can do via super, what investment structures make sense.
- Seek Advice / Use Professional Help
Especially when decisions involve large amounts (buying property, retirement planning, career breaks, caring responsibilities). A financial planner / accountant can help you structure things well. Also avoid relying solely on social media or hearsay.
How Strategies Differ Across Generations
While the basic principles above apply to everyone, how you implement them should shift depending on your generation.
- Risk Tolerance & Time Horizon: Young singles have more time to recover from investment losses; older ones less so. Thus younger may lean toward higher-growth assets whereas older need more stability and income.
- Goals & Priorities Differ: Gen Z & Millennials often focus on paying off debt, achieving home ownership, establishing career. For Gen X, focus leans toward catching up for retirement and securing what’s built. For Boomers, preserving lifestyle, managing health costs, ensuring estate matters are sorted, avoiding being asset-rich / cash-poor.
- Use of Tools & Technology: Younger cohorts are more likely to use fintech, apps, digital advisory tools. Boomers may prefer traditional advisers but should also ensure they understand modern tools and fees.
- Savings Rate vs Lifestyle Choices: Younger might sacrifice more of current lifestyle to build wealth; older generations often have more demands (health, dependents, caring) so saving may require rebalancing rather than radical cuts.
- Debt Type and Burden Changes: For younger: student debt, personal / credit card debt. For older: mortgages, sometimes reverse mortgages or large unknown liabilities (healthcare, aged care). Strategies differ accordingly.
Specific Financial Targets
Here are some “benchmarks” or targets singles should aim for. They are illustrative—not guaranteed—but helpful for checking whether you are behind or ahead.
| Age | Savings / Cash Buffer Benchmark | Super / Retirement Savings Benchmark* |
| 20-30 | Emergency fund = 3-6 months of living expenses; aim to have enough to cover deposits (if home ownership desired), paying off student debt. | ASFA data: ~AU$30-50k depending on whether you're low- or mid-income by early 30s. (qsuper.qld.gov.au) |
| 30-45 | Savings enough to fund major life goals (home, maybe children, business); reduce non-needed debt; build mid-term investments. | Somewhere between 1-2 × salary in super by mid 40s, depending on income and desired retirement age. |
| 45-60 | Aim to have most high interest debt cleared; savings invested wisely; super balance growing to “comfortable” level so that withdrawals won’t overly deplete capital. | ASFA’s target for singles retiring “comfortably” is ~$595,000. (qsuper.qld.gov.au) |
| 60+ | Secure income, control expenses, maintain liquidity; plan for possible health or care costs; ensure estate function is sorted. | Ensure super and other assets provide sustainable income; avoid being under-water on mortgage or other liabilities. |
*Super / retirement benchmarks vary by income, lifestyle, location. Always adjust to your own situation.
Common Mistakes to Avoid
- Relying too much on default super settings without checking fees or investment options.
- Delaying debt repayment until “later” when interest accrues.
- Ignoring inflation, fees, or tax when investing.
- Overlooking non-financial risks (job loss, health) and not having insurance or fallback plans.
- Not updating wills or estate plans.
- Overspending in lifestyle areas that don’t bring lasting fulfilment—this especially hurts when you are trying to build long-term wealth.
Case Examples
Here are hypothetical examples to show how strategies may differ.
- Example A: Zoe, 25, single in Sydney
Zoe has HELP debt, modest savings, works full time. She might: automate saving 5-10% of income into high interest savings; pay extra on HELP when she has surplus; do some regular voluntary super contributions; use budgeting app; avoid big consumer debt; set goal of home deposit in 5-7 years; invest an amount she’s comfortable with in shares/ETFs. - Example B: Mark, 50, single, owns home with mortgage
Mark has built equity in property, but also still has mortgage, modest investments, super lower than he’d like. He might: refinance mortgage; shift more savings into super; reduce exposure to volatile growth assets gradually; ensure health insurance; plan for retirement age; maybe think about downsizing or leveraging property equity - but carefully; talk with a financial planner about withdrawal strategies and tax.
Why Tailored Planning Matters
Because each person’s situation is unique (income, liabilities, risk tolerance, lifestyle goals, location, health). What works for a 25-year-old in a major city will likely not be optimal for a 60-year-old in a regional area. Without tailored planning, people risk overexposure to risk, inefficient tax outcomes, insufficient retirement income, or running out of money late in life.
Also, professional advice can help you see things you might miss: tax laws, super rules, investment fees, estate planning, risk insurance.
Summary: What to Do Next
- Do a full audit of your finances: debts, savings, investments, insurance.
- Set concrete goals: short, medium, long term. Write them down.
- Build or maintain an emergency fund.
- Prioritise paying off high interest debt.
- Regularly contribute to super, and understand your options.
- Diversify investments appropriate to your age and risk capacity.
- Review insurance and estate provisions.
- Consider engaging a financial adviser, at least for a plan, especially if your financial situation is moderate to complex.
Closing Thoughts
Being single isn’t a disadvantage—if you plan smartly. The power of compounding, disciplined saving, good debt management, and early attention to super and retirement can make a big difference. Each generation has distinct pressures (housing, inflation, lifestyle expectations, health), but the principles of financial resilience, clarity of goals, and informed decisions remain constant. And no matter your age, it’s never too late to improve.
References
- ASIC “Gen Z more concerned about finances than any generation in Australia” (on Gen Z personal debt, savings, BNPL use) (ASIC)
- Canstar “How Much Does the Average Aussie Earn, Save and Owe?” (personal debt stats by generation) (Canstar)
- Finder “How Much Money Should I Have in Savings by Age – Australia” (savings by age groups) (finder.com.au)
- Money.com.au “Average Savings in Australia by Age, Gender & State in 2025” (Money.com.au)
- ASFA data on super / retirement targets for singles (comfortable retirement, amount needed) (qsuper.qld.gov.au)
- ABS / AustralianSuper reports for super balances by age / gender (ANZ)
- MLC Financial Freedom Report 2024 – financial wellbeing, worries, generational comparison (mlc.com.au)
