Baby boomers are no longer ‘s richest group with Generation X overtaking them.
A new KPMG report has revealed Gen X, born from 1965 to 1980, now owns the most in terms of property and shares compared with the post-war boomers born from 1946 to 1964.
KPMG urban economist Terry Rawnsley said Generation X had overtaken the baby boomers as their parents either downsized their home or left an inheritance.
‘Baby Boomers have historically been the largest holders of housing assets, but as this cohort ages into retirement they are beginning to sell down their property portfolios,’ he said.
Generation X now had the biggest stake in real estate with an average holding of $1.31million, slightly ahead of the boomers on $1.3million and well ahead of the Millennials, born from 1981 to 1996, on $750,000.
Generation Z adults, born from 1997 to 2007, understandably had the smallest equity in property of just $69,000.
When it came to shares, Gen X was number one with $256,000 worth of stocks on average, compared with $206,000 for boomers, $51,000 for Millennials and $7,000 for Gen Z.
‘These lower levels of share ownership among younger generations indicate a cautious approach towards equity markets, possibly due to financial pressures and less cash to invest,’ Mr Rawnsley said.
Generation X is now at the age when pay levels typically peak and professionals are more likely to be in higher-paid roles or in executive management.
But boomers are number one for cash savings, typically having $242,000 in the bank compared with $176,000 for Gen X, $104,000 for Millennials and $26,000 for Gen Z.
The post-war generation also has the most in super and other assets, with boomers having typically accumulated $641,000 compared with $586,000 for Generation X, $260,000 for Millennials and $43,000 for Gen Z.
Compulsory super debuted in 1992 when the oldest boomers were already in their mid-forties which meant younger generations were more likely to be better off for their age.
‘There is some good news for younger generations in the superannuation asset class as they are coming off a far higher base than their parents,’ Mr Rawnsley said.
‘This means the wealth they will eventually accumulate from super will be far higher than older generations.’
But boomers born from the mid-1950s to the early 1960s benefited from free education, which existed until 1974 to 1989, when it was replaced by a Higher Education Contribution Scheme of deferred payments for university tuition fees.
Houses were also cheaper compared with incomes when they were young adults, which meant boomers went into retirement with less debt.
Generation X came of age in the 1990s and 2000s when capital city house prices became a lot more expensive compared with average salaries.
That meant Gen X had the largest debt of $448,000 followed by Millennials on $410,000, as the middle aged paid off mortgages and university tuition fees.
‘High levels of debt among Gen X and Millennials point to significant financial obligations, such as mortgages and HECS debts,’ Mr Rawnsley said.
Boomers had the smallest debt of $82,000, with many able to sell a house in a capital city and buy a cheaper house in a regional area while Gen Z had the smallest debt of $49,000, mainly from HECS and credit card obligations.
When it came to average net worth, based on assets minus debts, boomers were still number one.
They were worth $2.31million, compared with $1.88million for Gen X, $757,000 for Millennials and $96,000 for Gen Z.
‘These net worth figures highlight the wealth accumulation lifecycle, where older generations have had more time to build assets and pay down debt,’ Mr Rawnsley said.
The KPMG study was based on the average wealth levels for the mid-point age of each generation.
That put the 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 various cohorts, so there would be plenty of differences from these averages for people in each cohort,’ Mr Rawnsley said.
Generation X is also approaching the peak of its political power in .
Prime Minister Anthony Albanese, 61, is a boomer while every state premier, aged from 44 to 59, is from 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.