Baby boomers are no longer Australia’s wealthiest group and are being overtaken by Generation X.
A new report from KPMG has revealed that Generation
Terry Rawnsley, an urban economist at KPMG, said Generation X had overtaken baby boomers when their parents downsized their home or left an inheritance.
“Baby Boomers have historically been the largest holders of real estate assets, but as this group ages and retires, they are beginning to sell their property portfolios,” he said.
Generation with 750,000 dollars.
Generation Z adults, born between 1997 and 2007, understandably had the smallest home equity, at just $69,000.
When it came to stocks, Gen
“These lower levels of share ownership among younger generations indicate a cautious approach to the stock markets, possibly due to financial pressures and less cash to invest,” Mr Rawnsley said.
Baby boomers are no longer the richest group in Australia and Generation X is overtaking them
Generation
But boomers are number one in cash savings, typically having $242,000 in the bank compared to $176,000 for Gen X, $104,000 for Millennials and $26,000 for Gen Z.
Baby boomers also have the most super and other assets: Boomers have typically accumulated $641,000 compared to $586,000 for Generation X, $260,000 for Millennials and $43,000 for Generation Z.
The mandatory super debuted in 1992, when the oldest boomers were already in their forties, which meant that younger generations were more likely to be better off for their age.
“There is good news for younger generations in the retirement asset class as they come from a much higher base than their parents,” Mr Rawnsley said.
“This means the wealth they will eventually accumulate from super will be much greater than previous generations.”
But boomers born between the mid-1950s and early 1960s benefited from free education, which existed until 1974 and 1989, when it was replaced by a Higher Education Contribution Scheme of deferred payment of tuition fees. university enrollment.
Homes were also cheaper compared to income when they were young adults, meaning boomers retired with less debt.
A new KPMG report has revealed that Generation
Generation
That meant Generation
“High levels of debt among Generation X and Millennials point to significant financial obligations such as mortgages and HECS debt,” Mr Rawnsley said.
Boomers had the smallest debt, $82,000, and many could sell a home in a capital city and buy a cheaper home in a regional area, while Gen Z had the smallest debt, $49,000, mostly from HECS and credit card obligations.
When it came to average net worth, based on assets minus debt, boomers were still number one.
They were worth $2.31 million, compared to $1.88 million for Generation X, $757,000 for Millennials and $96,000 for Generation Z.
“These net worth figures highlight the life cycle of wealth accumulation, in which older generations have had more time to build assets and pay down debt,” Mr Rawnsley said.
The KPMG study was based on average wealth levels for the median age of each generation.
That puts boomers at 69 years old, Generation X at 51, Millennials or Generation Y at 35 and Generation Z at 20.
“We need to bear in mind that these are average values for the average age of people within the different cohorts, so there would be many differences from these averages for people in each cohort,” Mr Rawnsley said.
Generation X is also approaching the peak of its political power in Australia.
Premier Anthony Albanese, 61, is a boomer, while all state premiers, aged 44 to 59, are Generation X, along with opposition leader Peter Dutton, 54.
Northern Territory Chief Minister Lia Finocchiaro, 40, is the only Millennial to head a state or territory government.