Key takeaways
Australians rarely talk openly about money, yet most wonder: “Am I doing okay financially?”
Comparing across generations reveals both challenges and opportunities.
Once a large “middle,” Australia’s wealth distribution now looks more like a U-shape.
Many households are either asset-rich or asset-poor, with fewer in between.
Policy shifts increasingly target the top and bottom, leaving the middle less influential.
It’s human nature to compare.
We compare homes, cars, holidays, and yes, we compare wealth.
But most Australians don’t talk openly about money, so it’s hard to know where we really stand.
Have you ever caught yourself thinking: “Am I doing okay financially?”
Whether you’re a Baby Boomer enjoying retirement, a Gen Xer in your prime earning years, a Millennial juggling work and family, or a Gen Z just starting out, it’s only natural to want to know how you stack up.
So in this episode of Demographics Decoded, leading demographer Simon Kuestenmacher and I take a closer look at the wealth profiles of each generation in Australia.
The numbers may surprise you, but more importantly, the lessons they reveal can help you chart your own financial future.
For weekly insights subscribe to the Demographics Decoded podcast, where we will continue to explore these trends and their implications in greater detail.
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The disappearing middle
Once upon a time, we thought of Australia as a land of three clear groups: the rich, the poor, and a big, stable middle class.
But as Simon Kuestenmacher explains in our latest episode of Demographics Decoded, that’s no longer the case:
“Instead of the old bell curve of wealth with a big bulge in the middle, today we see a U-shape. There are plenty of households with relatively low wealth, plenty with high wealth, but fewer in between.”
That shrinking middle has real consequences.
In the past, governments could design policies for “the middle class” and reach most Australians.
Today, policies tend to tilt either to the lower-income or higher-income groups.
The middle doesn’t carry the same weight it once did.
Baby Boomers: the asset-rich generation (born 1946–1964)
Boomers have had time on their side.
They bought homes when property prices were modest relative to incomes, benefited from decades of growth, and have ridden the long bull run in property and shares.
On average, boomer households today hold:
- $1.3 million in property assets
- $641,000 in superannuation or business assets
- $206,000 in shares
- $240,000 in cash savings
That totals around $2.3 million in net wealth, with relatively little debt (about $82,000).
Boomers hold roughly half of Australia’s housing wealth, much of which will flow to younger generations in the coming decades.
As Simon reminds us:
“We’re heading into a once-in-a-lifetime wealth transfer. In the next 10 to 15 years, somewhere between $3 and $6 trillion will shift from boomers to their children, mostly millennials. But not every millennial will inherit, so the divide between those who do and those who don’t will widen further.”
Gen X: the sandwich generation (born 1965–1980)
If you’re a Gen Xer, you’re probably in your 40s or 50s, earning well, but also carrying some heavy financial burdens.
Gen X households average:
- $1.3 million in property assets
- $586,000 in superannuation
- $256,000 in shares
- $176,000 in cash
That equates to $1.88 million net wealth, but with close to $450,000 in debt.
They’re called the “sandwich generation” for a reason.
Many are still supporting kids at home (often into their 20s), while also helping ageing parents.
Add in big mortgages taken on during the pandemic’s ultra-low interest rate period, and Gen X feels the squeeze.
Simon points out the risks:
“This is the cohort banks are most worried about. They borrowed heavily during the boom, and now, with higher rates, some jobs at risk of automation, and households relying on two incomes, it could become fragile.”
Yet the future looks brighter. Within a decade, many of these pressures will lift.
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Children will move out, mortgages will be paid off, and parents will pass on inheritances.
Gen X may move from stress to surplus almost overnight.
Millennials: playing catch-up (born 1981–1996)
Millennials are often the most frustrated generation.
They’ve worked hard, studied harder, and many are raising families, yet feel locked out of the financial security their boomer parents enjoyed.
Their averages:
- $750,000 in property
- $260,000 in superannuation
- $51,000 in shares
- $104,000 in cash
That gives them a net wealth of about $757,000, well below Gen X and boomers.
Millennials make up 15% of households, but hold only 5% of Australia’s wealth.
It’s not hard to see why they’re frustrated.
Property is far more expensive relative to incomes than it was for their parents.
University, once a ticket to a secure and high-paying job, now often comes with years of debt.
As Simon explains:
“Millennials compare themselves to their boomer parents and feel left out. Their parents could buy a house on a single income. Today, you need two incomes and still stretch to the limit. So millennials look for alternatives: ETFs, shares, even crypto.”
But that search for shortcuts comes with risk.
“Most millennials holding crypto are what I call ‘squiggly line investors’ – hoping a few thousand dollars will magically turn into millions. A few got lucky with Bitcoin, but it’s speculation, not strategy.”
The positive? Millennials still have decades ahead to grow wealth the traditional way, step by step, year by year, through disciplined investing.
Gen Z: just getting started (born 1997–2012)
Gen Z is only just entering the workforce, yet already has an average net wealth of $96,000, largely thanks to compulsory super contributions, which start accumulating even in teenage jobs.
But they also carry around $49,000 in debt, mostly student-related.
As Simon notes:
“It’s too early to judge. They’re still at the starting line. Their challenge will be getting onto the property ladder, which is tougher than ever.”
Many will look to alternative investments, but as always, the fundamentals of wealth creation remain the same: spend less than you earn, invest wisely, and give it time.
The bigger picture
So what can we learn from all this?
- Averages hide as much as they reveal. You’re not your generation’s average. Some will be far ahead, while others will be far behind. Don’t fall into the comparison trap.
- Wealth takes decades to build. Baby Boomers didn’t get rich overnight; they accumulated wealth steadily. Millennials and Gen Z can too.
- Lifestyle inflation is the real enemy. More income is meaningless if you simply spend more.
- Property remains Australia’s cornerstone of wealth. Our residential property market is valued at around $11.4 trillion, with debt totalling just $2.4 trillion. That’s why real estate, combined with superannuation, continues to underpin household net worth.
And as Simon wisely says:
“Don’t be discouraged. The key is to be deliberate and strategic – in how you earn, spend, and invest. That’s what’s in your control.”
Final thoughts
If you’re ahead of the averages, well done.
Just remember: preserving wealth is as important as creating it.
If you’re behind, don’t panic.
The best time to start was 20 years ago. The second-best time is today.
At Metropole, we help Australians of all generations build, protect, and pass on their wealth safely and strategically.
With the right plan, you can set yourself up not just to “stack up” against your generation, but to move ahead of the curve.
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