Australia’s Generations by Wealth and Income

Wednesday, June 01, 2016

This infographic is based on analysis of the ABS Household Income and Wealth data released in late 2015 and 2013. It gives a picture of how both income and wealth is distributed across the generations of households in Australia and how it has been changing.

Generation Y: High incomes, low wealth

While Generation Y aged 25 to 34 are income rich, earning in gross household terms $113,152 per annum, their net worth is modest, at $268,800. As they enter their mid-30’s, they are getting closer to their key earnings years however such has been the low wages growth over the last two years, their household incomes have only increased by $5,356, or 5% since 2013. While Gen Y households on average earn more per annum than the older Boomers aged 55-64 who are rapidly easing out of their full-time working roles, these Boomers managed income increases almost three times that of the younger generation over this period ($14,040). This 14% increase in annual household incomes came about because the older Boomers were reliant not on wages growth but investment income which has seen solid increases over the last two years.

Generation Stagnation

It is ironic, and unfortunate that the emerging generation of wealth accumulators, moving up the career ladder have seen far smaller income increases (amounts just keeping up with inflation) than the generations that are easing out of employment or having ceased employment. Indeed, the generation aged 65+ managed much higher income increases (16%) than the younger working age Gen Y’s.

Wealth compared across the generations

The generational financial inequities are even more pronounced when analysing net wealth by generational cohort. While Gen Y have a household net worth of $268,800, it is less than half that of the Gen Xers who are just a decade older. The highest net worth generation in Australia are the Boomers aged 55-64 who not only have a net wealth almost 5 times that of the generation of their children (Gen Y) but they still have a decade or more of earnings and wealth accumulating ahead of them.

The $1 million households

While Gen Y have seen a wealth increase of 9% since 2012 ($21,647), the mid 50’s Boomers have seen a 14% wealth increase ($153,335) with their wealth rising since 2012 from $1,086,365 to $1,239,700. Therefore, not only does the average Australian household aged over 55 have a net worth exceeding $1 million, but, due largely to rising property prices over the last few years, it is also seeing the fastest wealth increases. When the demographic size of each generation is compared against their corresponding economic share, the differences are stark. Australians aged 25 to 34 are equal in size to the Over 65’s at 3.6 million, or 15% of the total population of 24 million. However, the net wealth of Generation Y is well below this population share at just 7% of the national private wealth compared to the Builders generation who have a share of 26%, almost twice their demographic proportion.

The quarter who own more than half

In total the Baby Boomers (45 to 64) are a quarter of the population (25%) but own more than half of Australia’s national wealth (53%). Their economic footprint is twice as large as their demographic footprint. While the Gen Y’s have decades of wealth accumulating ahead of them which will grow their net worth footprint, it is unlikely that Australia will ever see the likes of today’s Boomers again where a quarter own more than half. The Boomers have been the beneficiaries of a near 50-year economic miracle, and they are unlikely to ease out of this accumulating any time soon.

The $3 trillion wealth transfer

But there is some hope for the emerging generations who have stagnated in wealth and have been priced out of property. The households of Australians aged 55+ currently own a combined $2.8 trillion and over the next two decades will pass on much of this. By the time they move from the growing to the spending side of this accumulation, it will have exceeded the $3 trillion level. Therefore, the decades ahead will see the biggest intergenerational wealth transfer in Australia’s history and many of the younger generations will be the main beneficiaries.

Welcome to our blog...

We have a passion for research that tells a story, that can be presented visually, that brings about change and improves organisations. And we hope these resources help you know the times.

Our Social Media Sites

Facebook | McCrindle Research Social Media YouTube | McCrindle Research Social Media Twitter | McCrindle Research Social Media Flickr | McCrindle Research Social Media Pinterest | McCrindle Research Social Media Google Plus | McCrindle Research Social Media LinkedIn | McCrindle Research Social Media Mark McCrindle Slideshare


Last 150 Articles


Tags

sydney speaker national crime rates tattoos wealth and income REIV Conference Crime Rates train recap unemployment communication sydney metro water royal baby PSI employers publication Population Clock university degree HSC living consumerism small business lifestyle teachers office opening not for profit educated long weekend global generations engagement responsive year 12 summer focus group criminal high school TAS sydneysiders educhat 2014 families national wealth research services norwest travel baby not-for-profit millionth lalor park 40 million South Australia selfie WA goal Northern Territory darwin careers shopping Social Trend fresh newspaper Generation X study Northern Beaches Christian School resilience waverton townhouses friends faux-cilise aged care puzzle researcher social commentator wolloomooloo royal local communities households census ferry dream national private wealth VIC unaffordable earning pharmacy technology keynote speaker Australian Bureau of Statistics Financial Planning Association of Australia priorities ageing aussie culture wealth and income distribution media investor language Geoff Brailey Aussie sunburnt country ideas states optus sydney event research data results urban living index pharmacies gold coast students teleworking 10 years rising house prices paying to work Australian communities Tuesday Trend Christmas presents interactive Valentine’s Day capital cities population growth winter blues victoria ethnography housing growth infographic wall trend Love hello fresh divorce generation healthy future mateship growth future proof communications volunteers vegetarian Wodonga trends social media the australian dream baby name trends sector medicine work mates ACF census 2016 middle class changing face of sydney mining boom SA dare to dream potts point hobart social shifts ashley fell entrepreneur Channel Seven australia brand experience February 16 school satisfaction bus workshop follow university gender schools visual Aussies future of education ease of travel names weather in the media FOMO Australian Census workplace culture young people easy rider generation alpha workforce urban taskforce builders data entrepreneurs of today mentor Canberra online shopping case study resource home owner research holidays baby names snapshot cooking professional weekly earnings house baby boom Word Up budget product collaboration 2020 communicate survey design The ABC of XYZ mobile australian communities forum Births sector wide government The Daily Edition social impact forecasting world SMSF focus groups Wagga Wagga moreton bay future proofing cost new york times blaxland public holiday JOMO generations group economic Australian Home baby boomers hills shire conferences Merry Christmas village FPA Australian Dream facts energy socialising salary teaching twentyseventeen house price ACF 2016 friendship quote investing child care wealth distribution online sunny days Australian demographics keynote baby name predictions engage Engineering Manager pyrmont survey Western Australia debate post rationalism New South Wales google religion staying in royal family mover and shaker English Australian Trends food faux-cilising mother's day Kiwi professional services shifts ACT the hills shire social life public speaking System's Architect NSW megatrends NEETs group session innovation event travelling Australian Families goals shbc property price high density apartments report presentation bureau forecast life social IT Specialists wellbeing futurist Charlotte rent sydney hills coffee litter Queensland women mccrindle cloudy days Territory employment trends of 2017 seasons optus my business awards trend tuesday financial dreams christian global forum digital cultural diversity year 7 apartment Education Future Forum Sydney australians staying home more ageing population tableau offenders family Australians relational social lives personalities renter of the future manly sector wide study housing affordability insight hornsby politics celebration logan deloitte community event conference presentation culture global financial crisis commute social issues organisational culture motivate click marriages rental stress area Northern beaches Event media commentary real conference speaker January 26th learn divorce rate brand leadership Netflix ipswich social enquiry woolworths career Christmas lunch Scouts fears office space charity trends analyst home ownership baby name gen alpha transport 24,000,000 emerging trends DESTEL proactive tips tuesday Channel 7 challenge safe the changing face of urban living entertainment optimistic car 1975 shopper's pick entrepreneurial visualisation new office daily telegraph learner know the times debt world youth day Do It Yourself training education cold population map media activity Wellington millenials media release domestic cars social researcher high density living acf15 jobs of the future social analysis investment australian social research city cancelling plans work-life australian communities trends report spend Australian schools cartodb Australia Day 2017 ashley mckenzie marrickville finance social researchers property market Mark McCrindle parenting princess charlotte teacher collaborative demographer contiki balance financial future 2017 leader clothing menai 2015 holiday communities society trends qualitative research teach program residents outsourcing monarchy wedding census fail cancelling event market research schools students prince george internships parents demographic buildings graphs community engagement 2016 census results research visualisation 2016 identity Northern Beaches etiquette poker master geomapping thrive public speaker Christmas season household young australians dessert GPO google for education greatness demographic trends organisations mccrindle tea award New Zealand research pack Deaths consumer mythbusters commuters kate middleton Financial Planning Week education future culturally diverse financial wages demographics house prices vegemite education future report marriage statistics TDE renting Hornsby Shire Council slideshare sun faux-ciliser leadership workshop World Water Day property population REIV National Conference video non profit emerging technologies learning children education research staff house price rise education sector financial independence internship Caregiver CBD social commentary story news typical australian networking Real Estate Institute of Victoria workplace mccrindle in the media mortgage society panel gen z define 1968 work intern father's day 23 million professional development conference income Bathburst authenticity average aussie generational trends curiosity poor "know the times" low density increasing densification Assistant Store Manager earn data analyst aged care thought leadership repayments omnibus sports cost of living Royals school students future-proof brands plans Financial Planning Association dreaming church sentiments going out huffington post future neutral bay trends of 2016 2012 census results rain 2013 Myth marketing the average aussie ABS crows nest EFF men future of work rule keeper mccrindle research alpha events local sustainable tea social trends affordability participants housing trends 24 million innovative daily commute grandparents couple equip business index wage suburban living infographic list perth sydneycity urban business tv Gen Y youth brisbane cash christianity Generation Y meals stats nfp meetings Tasmania generation Z #censusfail personal growth Duchess of Cambridge bondi anzac 1980 annual income office eliane stay home Queensland: QLD millennials retirement hopes the hills customer skills population milestone learning styles student Kirsten Brewer capital city narcissism 2016 census Real Estate McCrindle Speakers moderators guide mythbusting overcast state youth unemployment housing market NT school professional speaker winter high density in depth interviews experience community easter Melbourne royal influence toys Tuesday Trends change happiness 1994 owning a home Res Vis insights land of the middle class data visualisation suburb relevant storytelling emerging generations jobs analysis internet DIY demographic transformations Sydney keynote speaker speakers New Zeland supply and demand Adelaide growing population environmental scanning suburbs Australia Day economy financial fears christmas earnings ultimo crime housing rise of local tertiary education social change wealth Gen X social research Australian Communities Trends cancel plans Research Executive socialites presentations eliane miles affordable Christchurch environment home rich award winner

Archive