The distribution of wealth in Australia is being reshaped as members of the Baby Boomer generation shift financial resources into liquid assets and provide financial assistance to their children.
Boomers, born between 1946 and 1964, are transferring proceeds from property sales into bank deposits and superannuation, analysis by KPMG shows.
Terry Rawnsley, an urban economist at KPMG who conducted the study, said Boomers hold more in cash and super than any generation, highlighting their move towards safe, liquid assets in retirement.
“The great wealth transfer is in full swing as Baby Boomers start downsizing properties and moving that wealth into cash,” he said. “They are also beefing up their super accounts as they begin to spend in retirement or hand down wealth to their children.”
Boomer households still have the highest average household wealth of any generation (almost $2.8 million). But Generation X (born between 1965 and 1980) has the highest average housing wealth at $1.46m – about $95,000 more than Boomers.
The great wealth transfer
The flow of Boomer wealth to their children and grandchildren is on the rise.
The average annual parental gift paid to those aged 35 to 54 jumped 23 per cent since 2013-14 to nearly $25,000, the annual Household Income and Labour Dynamics in Australia (HILDA) Survey shows.
Meanwhile, the average inheritance received by those aged over 55 years rose by $103,000 during the same period.
The stream of parental gifts and inheritance is set to gather pace; a 2021 Productivity Commission report on generational wealth transfers said around $3.5 trillion in wealth is expected to pass from Boomers to subsequent generations over the next two decades. The oldest Baby Boomers will turn 80 this year.
The age of peak wealth
Household wealth in Australia peaks between the age of 55 and 64 years, the KMPG study shows. That cohort had an average net worth of $2.5 million last financial year.
Property remains the cornerstone of family wealth; average net worth across all Australian households reached $1.66 million in June 2025 with housing assets accounting for nearly 70 per cent of that total.
The figure for average household wealth is inflated by very wealthy families including billionaires. The alternative measure of median household wealth – which is the middle value for all households – can be about 45 per cent lower than average household wealth, previous studies have shown.
Maximum indebtedness comes between the ages of 35 and 45 years – households in that cohort had outstanding loans of $531,000 on average.
Wealth has been growing surprisingly rapidly for some younger households. The 25-34 year household age group recorded the largest five-year increase in wealth, rising by 63 per cent to an average of $550,000 over the five years to 2024-25.
Rawnsley attributed this to fortunate first home buyers in that cohort who purchased property immediately after the COVID crisis and have since benefited from a surge in house prices.
“This increase was largely driven by increased home ownership of young Australians, sparked by ultra-low interest rates in 2020 and 2021,” Rawnsley said. “However, with interest rates now at much higher levels that home ownership window is now firmly closed.”
The rate of home ownership among under 35s has fallen substantially during the past three decades and research shows the decline has been most pronounced among low-income earners.
This suggests many in the 25-35 year-old age group have experienced much smaller wealth gains than the average.
How our wealth compares with other countries
An extended period of strong house price growth means Australians rank among the wealthiest people in the world.
The 2025 Global Wealth Report by investment bank UBS found average wealth per person Australia was US$516,640 ($737,800) which was fifth highest behind Switzerland, US, Hong Kong and Luxembourg.
Australia ranked second place in the world (behind Luxembourg) for median wealth, the middle value of all adults, at US$268,424 ($383,390).
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Matt Wade is a senior economics writer at The Sydney Morning Herald.Connect via X or email.
