A six-figure dream is dead as Australians redefine what it means to be rich – realestate.com.au

Australians have dramatically reset the meaning of wealth, with research showing that a salary once considered elite no longer cuts it.

Research results from comparison group Finder showed that the six-figure dream is officially dead, with Australians saying they wouldn’t feel rich unless they were making almost $400,000 a year.

The average amount needed to feel rich is now $389,118 per year – a staggering amount compared to the average full-time annual salary of about $104,000.

The research shows that perceptions of wealth have changed dramatically as the cost of living rises, particularly housing, rental prices and essential bills, forcing Australians to rethink what financial security looks like.

But the number is not the same for everyone.

Generational gaps are stark, with younger Australians having much higher income standards than their older counterparts.

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Millennials topped the list, believing it takes a whopping $470,881 a year to feel rich.

Gen X followed at $416,067, while Gen Z placed the figure at $351,793. Baby boomers were the outlier, needing just $273,648 to consider themselves wealthy.

Finder personal finance expert Sarah Megginson said the gap reflected life stage pressures.

She explained that millennials and Generation

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Generation Z had lower money expectations than millennials.

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Baby boomers tended to have more financial security and a lower cost of living, while Generation Z was more likely to live at home or share a home, keeping costs down.

There was also a gender gap in the perception of money, although it was narrowing.

Men said they needed $393,438 a year to feel prosperous, compared to $384,424 for women, a difference of about $9,000. In 2022, that difference was more than double.

Ms Megginson warned that the continued pursuit of higher income targets could come at a cost, noting that only a small proportion of Australians earned somewhere in the region of $400,000.

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Finder revealed that half of Aussies had less than $1000 in the bank to their name.

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Finder revealed the average Australian had $47,624 in cash saved, but the figures were skewed by some people with very high bank balances. In reality, almost half of Australians had less than $1,000 in their bank accounts, Finder noted.