The Grattan Institute has published a challenging and enlightening report, The Wealth of Generations
This is an excellent contribution to the public policy challenges facing Australia.
Many of my clients will understand the context of these changes within the “prams and coffins” debate.
The report finds that most age groups are richer than they were in 2003.
- An average 55 to 64-year old household was $173,000 richer in real terms in 2011-12 than was a household of that age in 2003-04.
- The average 65 to 74-year old household was $215,000 better off over the same period.
However, the average 35 to 44-year old household was only $80,000 richer.
There’s always a but…..
- Worst affected were 25 to 34-year olds who had less wealth than people of the same age eight years before – even though they saved more than did people of that age in the past.
Amongst the plethora of quality details and graphic representations, three significant observations I thought worth sharing.
Consider future tax impacts.
Annual Change in Household Wealth
Negative gearing anyone?
Have we reached “peak-house?”
Home Ownership Rate – %
Earnings and House Prices.
I am sure Misuer Picketty would have something to say about this chart…
- Wealth of Generations – Grattan Institute
- How Australia Ate its Children – Leith van Onselen
- Boomers, you are handing your children a lower standard of living – Business Insider