Boomers Transform Wealth Distribution: Key Insights Revealed in Charts
In Australia, the distribution of wealth is undergoing significant changes fueled by the Baby Boomer generation. This demographic, born between 1946 and 1964, is making strategic financial moves as they transition into retirement. Recent analysis by KPMG illustrates how Boomers are increasingly shifting their wealth into liquid assets and supporting their children financially.
Wealth Transition Among Baby Boomers
According to Terry Rawnsley, an urban economist at KPMG, Boomers presently hold more cash and funds in superannuation than any other generation. This trend indicates their preference for safe, liquid assets as they age. “The great wealth transfer is in full swing as Baby Boomers start downsizing properties and moving that wealth into cash,” he stated.
- The average household wealth for Boomers is approximately $2.8 million.
- Generation X has the highest average housing wealth at $1.46 million, surpassing Boomers by about $95,000.
The Rise of Parental Gifts and Inheritance
The flow of wealth from Boomers to younger generations is gaining momentum. Data from the annual Household Income and Labour Dynamics in Australia (HILDA) Survey reveals a 23% increase in parental gifts for recipients aged 35 to 54, now averaging nearly $25,000. Additionally, those over 55 have seen their average inheritance rise by $103,000 since 2013-14.
A 2021 report by the Productivity Commission predicts that around $3.5 trillion in wealth will be transferred from Baby Boomers to subsequent generations in the next two decades. Notably, the oldest Baby Boomers will celebrate their 80th birthday this year.
Wealth Peaks and Home Ownership Trends
Research shows that household wealth in Australia peaks among individuals aged 55 to 64, with an average net worth of $2.5 million recorded last financial year. Property holdings account for nearly 70% of overall wealth, with the average net worth across Australian households reaching $1.66 million in mid-2025.
However, these figures are skewed by wealthy families. Median household wealth, which represents the middle value, can be significantly lower—up to 45% less than average household wealth.
- Households aged 35 to 45 hold an average debt of $531,000.
- Households aged 25 to 34 experienced a remarkable wealth increase of 63% over the past five years, reaching an average of $550,000.
Challenges for Younger Generations
The increase in wealth among younger households is largely due to favorable market conditions for first-time home buyers post-COVID. However, with rising interest rates, opportunities for home ownership have diminished, especially among low-income earners. This trend has adversely affected the 25-35 age group, hindering their wealth growth.
Australia’s Wealth on the Global Stage
Australians rank among the wealthiest globally, according to the 2025 Global Wealth Report by UBS. The average wealth per person in Australia is estimated at US$516,640 (approximately $737,800), placing it fifth worldwide. Furthermore, Australia boasts the second-highest median wealth globally, behind Luxembourg, at US$268,424 (around $383,390).
As the Baby Boomer generation continues to impact wealth distribution, the financial landscape in Australia is poised for further transformation. Filmogaz.com will continue to monitor these developments closely.
