Over the last year or so you may have seen that the median wealth of Australian households has been on the rise. In fact, one in ten Australians are millionaires!
If you're wondering how and where this wealth is distributed amongst Australians, don't go anywhere! We'll be sharing all the secrets in this article. Additionally, we'll be sharing some wealth creation strategies that can help you achieve similar financial related success.
There are various components that constitute wealth. In 2018, the ABS released the following data. It demonstrates the distribution of wealth in Australia.
Asset Class | Percentage (%) |
Owned home | 39% |
Superannuation | 20% |
Shares and other financial assets | 19% |
Investments in other real estate | 12% |
Other non-financial assets | 10% |
Since early in 2020, the Australian housing market has seen significant price increases and there has been greater demand for housing. Furthermore, in our professional opinion, we anticipate that the percentage of 'investments in other real estate' and 'owned homes' could now be significantly higher.
Michael Read explains in the Australian Financial Review that in comparison to other countries, Australia displays a larger "preference for housing assets".
Much of the wealth produced within real estate has been particularly fuelled by the economic effects of the COVID-19 pandemic. Low interest rates, government support and readily available finance were desirable factors that enticed many Australian households to purchase housing assets throughout much of 2020 and 2021.
Household wealth distribution by age
People aged 55 and older hold the greatest value in household wealth, in the country. Please refer to the table below which demonstrates the average breakdown of wealth value by age-group in Australia.
Age Group | Wealth Value ($) | Percentage (%) |
25-34 | $345,900 | 7% |
35-44 | $663,800 | 13% |
45-54 | $1,233,100 | 24% |
55-64 | $1,461,100 | 29% |
65+ | $1,371,200 | 27% |
How REIF can support you on your wealth creation journey
Are you looking at ways or assets to help increase your household wealth, REIF have a skilled team that can help. Our finance and property specialists are well equipped to support you in understanding your options and investing in assets that can support you for your financial future.
We're specialised in assisting people looking to invest or access finance that can allow you to expand your asset portfolio. Start a conversation with us today by clicking the button below. Alternatively, you can contact us on the details provided. Always happy to help!
Ph: 1300 130 932
Email: clientservices@reif.com.au
