The great Aussie wealth transfer: Generation X now owns more real estate and shares than boomers

Baby boomers are no longer Australia’s richest group, as Generation X catches up with them.

A new KPMG report shows that Gen

KPMG urban economist Terry Rawnsley said Generation X has overtaken baby boomers as their parents downsized or left an inheritance.

“Baby boomers have historically been the largest home owners, but as this cohort retires, they are beginning to sell their real estate portfolios,” he said.

Generation

Generation Z adults, born between 1997 and 2007, understandably had the smallest real estate assets: just $69,000.

When it came to stocks, Generation

“These lower levels of share ownership among younger generations indicate a cautious approach to the stock markets, possibly due to financial pressures and less money to invest,” Rawnsley said.

Generation

But boomers lead the way in saving money and typically have $242,000 in the bank, compared to $176,000 for Gen X, $104,000 for Millennials and $26,000 for Gen Z.

The post-war generation also has the most super and other assets, with boomers typically accumulating $641,000, compared to $586,000 for Gen X, $260,000 for Millennials and $43,000 for Gen Z.

Mandatory super debuted in 1992 when the oldest boomers were already in their mid-40s, meaning younger generations were likely better off for their age.

“There is good news for the younger generations in the retirement category as they come from a much higher level than their parents,” Rawnsley said.

‘This means that the wealth they will ultimately accumulate from super will be much higher than that of older generations.’

But boomers born between the mid-1950s and early 1960s benefited from free college, which existed until 1974 until 1989, when it was replaced by a higher education contribution plan with deferred tuition payments.

Homes were also cheaper compared to incomes when they were young adults, meaning boomers retired with less debt.

A new KPMG report shows that Gen

Generation

That meant Generation

“High debt among Generation

Boomers had the smallest debt at $82,000, with many able to sell a house in a capital city and buy a cheaper home in a regional area, while Gen Z had the smallest debt at $49,000, mainly due to HECS and credit card obligations.

When it came to average net worth, based on assets minus liabilities, boomers still ranked number one.

They were worth $2.31 million, compared to $1.88 million for Gen X, $757,000 for Millennials and $96,000 for Gen Z.

“These wealth figures highlight the wealth-building life cycle, where older generations have had more time to build assets and pay off debt,” Rawnsley said.

The KPMG study was based on average wealth levels for the middle age of each generation.

That puts boomers at 69, Gen X at 51, Millennials or Generation Y at 35 and Gen Z at 20.

“We should note that these are average values ​​for the average age of people within the different cohorts, so there would be a lot of differences from these averages for people in each cohort,” Mr Rawnsley said.

Generation X is also nearing the height of its political power in Australia.

Prime Minister Anthony Albanese, 61, is a boomer, while every state premier, aged 44 to 59, is Gen X, along with Opposition Leader Peter Dutton, 54.

Northern Territory Chief Minister Lia Finocchiaro, 40, is the only Millennial to lead a state or territory government.