Australia’s richest millennials are rich because of their well-off parents, not because they have higher-paying jobs, according to a new report.
Those under 35 and able to buy an investment property or a home with the help of their parents are more likely to be in the richest 10 percent for their age, according to the study.
And when it came to assets, they also owned almost half the wealth of their age group, according to the report from the Australian Council of Social Service and the University of New South Wales.
But they were only in the 24 percent of young people with the highest incomes.
“This suggests that younger, wealthier households have not accumulated more wealth than the rest of their age group because they have much higher incomes,” the report says.
‘Many probably received support from their parents to invest in the so-called Bank of Mom and Dad.
Australia’s richest millennials are rich because of their wealthy parents and not because they have higher-paying jobs, according to a new report (file image shown)
The study looked at households where people living together were 35 years old or younger, from married couples to professionals in a shared house, but not those living with their parents.
He found that they were more likely to get rich with a combination of investment properties and shares.
The richest 10 per cent of young people in Australia were worth an average of $2.014 million, or 25 times the net worth of the poorest 60 per cent, worth $80,000.
At all levels of wealth, homes where residents under 35 lived together had a median value of $410,000.
The $2 million average wealth of the richest 10 percent was also divided into several components.
This included a $734,000 on a house they lived in, $445,000 on an investment property that was rented, and a average financial portfolio worth $527,000, including stocks.
Those under 35 who can buy an investment property with the help of their parents are more likely to be in the top 10 per cent in terms of wealth for their age, according to a study by the Australian Council of Social Service and the University of New south Wales.
retirement and other investments were also included in the total wealth figure of $2 million.
Rising housing and stock prices since the worst of the pandemic in March 2020 have worsened inequality.
Cassandra Goldie, chief executive of ACOSS, said: “These disturbing figures show that people with the lowest incomes and the least wealth are being left behind due to growing inequality in Australia.”
Across all age groups, the richest 10 percent were worth $5.22 million, compared to $343,000 for the poorest 60 percent and $1.176 million for everyone else.
Among those over 65, including baby boomers, the richest 10 percent were worth $6.977 million, compared to $539,000 for the poorest 60 percent and $1.584 million for everyone else.