As worries about the global financial crisis fade, Australian households look ready to break open their piggy banks.
After the onset of the GFC in 2008, household savings reached their highest levels since the mid 1980s and have only eased slightly in recent months.
Westpac chief economist Bill Evans said the continuing high levels of saving means that family finances might be in better shape than many believe.
"Despite a cautious business sector, which is successfully restraining wages growth, this high savings rate represents an opportunity for households to lift consumer spending growth," he said.
"The strength of the household sector's balance sheet will provide the Australian economy with a solid foundation for a lift in growth momentum in 2015."
Mr Evans said the higher rate of savings is not just in bank deposits and superannuation - low interest rates are helping home owners pay down their debt quicker.
Reserve Bank of Australia figures show that balances in mortgage offset accounts and redraw facilities have risen to around 15 per cent of outstanding loan balances.
Mr Evans estimated that would put most mortgages two years ahead of their repayment schedule.
Commonwealth Bank economist Diana Mousina believes household savings ratios have peaked and further falls should drive a rise in consumer spending.
"Consumer behaviour has moved towards more risk appetite, less balance sheet repair and more spending," she said.
"This has occurred as wealth positions have recovered to pre-GFC levels."
Ms Mousina expects household savings ratio to fall to 8.2 per cent next year from the double-digit levels since the GFC.
"The RBA expects consumer spending to grow a little faster than incomes," she said.
"This implies a modest decline in the household savings ratio towards the lower end of the range seen over recent years."
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