The new Australian divide: Retirees splurge while renters struggle

Sean Cao

2 hours ago

The ongoing cost-of-living pressure is driving a new divide among Australian consumers, with retirees splurging while young renters struggle to keep up, according to new research.

Data from Pretian Squared reveals that Australians aged 65+ are leading spending growth, surging 14.2 per cent in the year to March, the strongest of any age group. 

Analysis shows that people of this age group are spending freely thanks to paid-off mortgages and long-term savings.

In contrast, younger consumers aged 25 to 29 – many of whom rent – are spending more than a third of their income on housing.

As inflation further erodes their already stretched budgets, they are forced to cut essential and discretionary spending. Purchases such as take-away coffee and snacks are seeing a 50 per cent cut in consumption. 

The divide between “cashed-up retirees” and “cash-strapped young renters” comes as ABS’s data on Australia’s household spending showed a sharp fall of 1.1 per cent in April, the biggest drop since October 2023.