Average Wealth of Australians
Wealth is always distributed unequally world wide. The wealth follows the principle of 80/20 means the 20% people around the world own the 80% of the total wealth in the world while the rest of the 80% in this world share just 20% of the wealth. I know that this sounds cruel but it’s true. And the logical reason behind it is The Compound Interest. The Compound Interest is so powerful over the time that rich get richer.
The first comprehensive survey of household assets, debts and savings has been released by the Reserve Bank of Australia in 2002.
The report results showed the median wealth of the average Australian household was $218,500. The most valuable non-financial asset of most households in the survey was their home.
According to the report, New South Wales and Queensland households were likely to have higher levels of wealth than other states predominately as a result of the boom in median property prices in these states.
In New South Wales the median household wealth was $265,000 in 2002, compared to a median household wealth in Queensland of $173,000 and a median household wealth in South Australia of $153,100.
Household wealth was also determined by stage of life, with households towards the end of their working life, perhaps not surprisingly, having more savings, greater equity in their homes and lower mortgages than younger families.
Other findings in the studies include:
•The average wealth of the wealthiest 10 per cent is about $1.8 million;
•The largest component of both assets and debt is property;
•Wealth is strongly associated with age. The median wealth of 55–65 year-olds was $444,000 compared to $8000 among 18–24 year-olds;
•University education is associated with substantially higher levels of wealth;
•Singles and single-parent households have the lowest levels of wealth;
•Pensioners are well short of the wealth that would enable them to live a ‘comfortable lifestyle’, as determined by the Association of Superannuation Funds of Australia;
•Even accounting for age differences, marriage and to a lesser extent de facto relationships, are associated with greater wealth;
•The affect of divorce on wealth differs between men and women;
•Children are associated with less wealth;
•Smokers are less wealthy;
•Drinkers are wealthier, unless they are heavy drinkers;
•Exercise makes no difference to levels of wealth.