Retirement
How much money do Australians actually have?
The average wealth of an Australian household has passed the $1 million mark, largely underpinned by property and superannuation holdings.
How much money do Australians actually have?
The average wealth of an Australian household has passed the $1 million mark, largely underpinned by property and superannuation holdings.
In figures released by the Australian Bureau of Statistics (ABS), there has been a 37 per cent increase in household wealth over the last decade. About 10 years ago, average household wealth hovered at $749,000.
The million-dollar mark is a 6 per cent increase from the 2015-16 report, which was $963,800 per household.
Despite strong growth for some, inequality in the distribution of wealth has not improved, according to the figures. ABS chief economist Bruce Hockman said that income and wealth inequality have remained stable over the past decade.
“While there was a marginal increase in inequality in the period leading up to the global financial crisis in 2007-08, since 2007-08 the distribution of income between households has remained relatively stable,” Mr Hockman said.
The Gini coefficient mentioned in the report shows that Australia’s inequality is at 0.328. It is measured by percentage of income per recipient. This means that if every resident earned the same amount, the Gini coefficient would be a 0 and if one person earned 100 per cent of the country’s income, the coefficient would be 1.
The Gini coefficient for wealth was slightly higher over the decade at 0.621. This means the wealthiest 20 per cent of people hold 60 per cent of the country’s income.
“Over the past decade, income growth has been slow with average weekly household incomes increasing $44 to $1,062 in 2017-18. In comparison, in the four years up to 2007-08, average weekly household income grew by $220 in real terms to $1,018,” said Mr Hockman.
“For low-income households, there has been an increase of $28 in average weekly household income over the past decade, while for high-income households, there was an increase of $57,” continued Mr Hockman.
This email address is being protected from spambots. You need JavaScript enabled to view it.
About the author
About the author
Retirement Planning
Is it time for retirees to retire the 4% rule?
New economic realities are challenging long-held assumptions about how retirees should tap into their wealth. ...Read more
Retirement Planning
Modern retirement means more than just spending time with the grandkids
How are today’s retirees really spending their time and money? ...Read more
Retirement Planning
Retirement costs spike at the fastest rate in over a decade
Retirees have been hit hard by higher living costs, including fuel prices and property rates. ...Read more
Retirement Planning
Downsizing is on the rise, but many are doing it wrong
Decluttering and downsizing go hand-in-hand. ...Read more
Retirement Planning
COVID-19 and low interest rates haunt early retirees
The economic turbulence of the pandemic is messing with the well-laid plans of those looking at the transition into retirement. ...Read more
Retirement Planning
Australia ranks 7th on global retirement index
Australia occupies the seventh place on the Natixis Global Retirement Index, behind Switzerland, Norway, Ireland, the Netherlands and New Zealand. ...Read more
Retirement Planning
What is an annuity and how does it work?
Having enough income for retirement is important. If you’re looking for an alternative source of income when you’re retired, an annuity may be the answer. ...Read more
Retirement Planning
Are you retiring with more than you need?
A lack of knowledge about retirement options as well as outdated models mean many Australians are retiring with more than they need, an industry expert has revealed. ...Read more
What Omicron means for property, and are units right for first-time buyers? What is equity crowdfunding? Are industry super funds tapping into member funds to save their skins?
Listen now
Will housing affordability improve in 2022? Will buy now, pay later become the norm? Why are Aussies staying in failing super products?
Listen now
Who really benefits from crypto ETFs? How will the RBA respond to rising inflation? Could a mandate help address unpaid super?
Listen now
How the post-lockdown period will influence property, what the soaring NFT market means, and defining financial wellness
Listen now
Retirement Planning
Is it time for retirees to retire the 4% rule?
New economic realities are challenging long-held assumptions about how retirees should tap into their wealth. ...Read more
Retirement Planning
Modern retirement means more than just spending time with the grandkids
How are today’s retirees really spending their time and money? ...Read more
Retirement Planning
Retirement costs spike at the fastest rate in over a decade
Retirees have been hit hard by higher living costs, including fuel prices and property rates. ...Read more
Retirement Planning
Downsizing is on the rise, but many are doing it wrong
Decluttering and downsizing go hand-in-hand. ...Read more
Retirement Planning
COVID-19 and low interest rates haunt early retirees
The economic turbulence of the pandemic is messing with the well-laid plans of those looking at the transition into retirement. ...Read more
Retirement Planning
Australia ranks 7th on global retirement index
Australia occupies the seventh place on the Natixis Global Retirement Index, behind Switzerland, Norway, Ireland, the Netherlands and New Zealand. ...Read more
Retirement Planning
What is an annuity and how does it work?
Having enough income for retirement is important. If you’re looking for an alternative source of income when you’re retired, an annuity may be the answer. ...Read more
Retirement Planning
Are you retiring with more than you need?
A lack of knowledge about retirement options as well as outdated models mean many Australians are retiring with more than they need, an industry expert has revealed. ...Read more
More articles
Website Notifications
Get notifications in real-time for staying up to date with content that matters to you.
