Baby Boomers put squeeze on the young

Original article by John Kehoe
The Australian Financial Review – Page: 8 : 19-Aug-19

The Grattan Institute contends that people aged 40 contribute twice as much in tax to support older Australians than Baby Boomers did at the same age, after adjusting for inflation. The percentage of households over the age of 65 that pay tax has fallen from 27 per cent in the mid-1990s to 17 per cent, while the Grattan Institute notes that the wealth of households under the age of 35 has barely changed since 2004. It puts forward a number of suggestions to address this intergenerational divide, including taxing superannuation earnings in retirement at 15 per cent and lifting the pension age.

CORPORATES
GRATTAN INSTITUTE, AUSTRALIAN TAXATION OFFICE, AUSTRALIA. PRODUCTIVITY COMMISSION, KPMG AUSTRALIA PTY LTD

Females closing the gender wealth gap

Original article by Roy Morgan
Market Research Update – Page: Online : 6-Aug-19

The latest findings from the second edition of the Roy Morgan Wealth Report show that the average net wealth (personal assets minus debt) per capita of females in Australia in the year to March 2019 was $400k, equal to 89% of the male average of $449k. This gap is now much smaller than it was in 2007, prior to the global financial crisis, when the female average was only $236k (or 80% of the $296k male average). Overall, the average net wealth per capita of Australians has grown from $285,600 in 2007 to $424,200 in 2019, an increase of 59.7%. This is an increase in real terms (allowing for inflation) of 23.8%. Both genders have shown increased per capita net wealth, but the average woman experienced a 69% increase (from $236k to $400k), while men showed an increase of only 52% (from $296k to $449k). The report is drawn from over half a million in-depth face-to-face interviews conducted in Australians’ homes over the period from 2007 to 2019.

CORPORATES
ROY MORGAN LIMITED

Perth loses top personal net wealth ranking to Sydney

Original article by Roy Morgan
Market Research Update – Page: Online : 6-Aug-19

The second edition of the Roy Morgan Wealth Report shows that Sydney boasted the highest average net wealth (personal assets minus debt) per capita in the year to March 2019, at $570,000. It was followed by Melbourne ($491k), the ACT ($441k) and Perth ($358k). In contrast, Perth had the highest average net wealth per capita in the year to December 2007, at $338k. This was well ahead of Sydney on $292k and Melbourne on $268k, which also trailed the ACT ($329k). The report is drawn from over half a million in-depth face-to-face interviews conducted in Australians’ homes over the period from 2007 to 2019.

CORPORATES
ROY MORGAN LIMITED

Australians’ net wealth shows long term gains

Original article by Roy Morgan
Market Research Update – Page: Online : 2-Jul-19

The second edition of the Roy Morgan Wealth Report shows that the value of assets held by Australians has almost doubled from 2007 to 2019 (up 96.0%). This is faster than the increase in debt of 78.6% over the same period. As a result, net wealth is now 98.7% higher in 2019 than it was in 2007. Even after allowing for population growth and inflation, the average Australian is better off. The second edition of the Wealth Report focuses particularly on how net wealth has changed since just before the onset of the global financial crisis. Australia performed very strongly over the past 12 years compared with other OECD nations – particularly in Europe, where many nations went backwards over the same period. The report is drawn from over half a million in-depth face-to-face interviews conducted in Australians’ homes over the period from 2007 to 2019.

CORPORATES
ROY MORGAN LIMITED

Australians’ wealth improving across all levels

Original article by Roy Morgan
Market Research Update – Page: Online : 2-Jul-19

The second edition of the Roy Morgan Wealth Report shows that net wealth per capita in Australia has increased by 65.1% since 2007, with gains across all balance levels. The average per capita increase for the lowest value 50% (Quintiles 1 to 5) of the population was 55.0%, while the average increase for the highest value 50% (Quintiles 6 to 10) was 65.5%. The report also shows that the wealthiest 10% of Australians (with an average net wealth of over $2 million, up by $811,000 from 2007), hold 47.9% of net wealth. The poorest 50% of Australians (with an average of $31,000, up by $11,000), who despite gains, have seen their total share of net wealth fall from 3.9% to 3.7%. The report is based on over half a million in depth face-to-face interviews conducted in people’s homes over the period from 2007 to 2019 across Australia.

CORPORATES
ROY MORGAN LIMITED

Murdoch siblings catapult up list

Original article by Michael Bailey
The Australian Financial Review – Page: 1 & 2 : 29-May-19

Lachlan Murdoch is ranked 18th on the 2019 Financial Review Rich List, with estimated personal wealth of $18bn. His sister Prudence MacLeod is ranked 22nd and is estimated to be worth $3.1bn. Rupert Murdoch’s other four children are not eligible for inclusion in the Rich List as they are not Australian citizens. The wealth of Murdoch’s children was boosted after they were each given 17 million shares in Walt Disney Company following the media giant’s acquisition of 21st Century Fox. Disney’s shares recently reached a record high.

CORPORATES
WALT DISNEY COMPANY, 21ST CENTURY FOX INCORPORATED, NOVA ENTERTAINMENT PTY LTD, MACDOCH VENTURES, NEWS CORPORATION – ASX NWS, CANVA PTY LTD, ARTESIAN CAPITAL MANAGEMENT (AUSTRALIA) PTY LTD, TEN NETWORK HOLDINGS LIMITED

Australia’s personal wealth declines

Original article by Roy Morgan
Market Research Update – Page: Online : 15-Apr-19

A Roy Morgan Single Source survey shows that the gross personal wealth (assets) of Australians aged 14+ (including owner-occupied homes) stood at $9,784 billion in the December 2018 quarter. This represents a drop of $512 billion or 5.0% from the September quarter when it was $10,296 billion, and is now at the lowest level recorded throughout 2018. Net wealth (after debt) has also decreased by 4.3%, from $8,993 billion to $8,608 billion. Despite the overall decline in household wealth over the December quarter, the average gross household wealth remains over one million dollars, at $1,016,000. This is $58,000 or 5.4% below the average recorded in the September quarter and the lowest since December 2017. The average gross wealth per capita was $502,000 in September and this has also fallen by 5.4% to $475,000 in December, the lowest for 12 months. The survey is based on in-depth interviews conducted face-to-face with over 50,000 consumers per annum in their homes.

CORPORATES
ROY MORGAN LIMITED

Household wealth plunges by $10,000, the most since 2011

Original article by John Kehoe
The Australian Financial Review – Page: 9 : 29-Mar-19

Data from the Australian Bureau of Statistics shows that the nation’s overall household net worth fell by $257bn in the December 2018 quarter. This equates to an average of $10,198 per household, and followed a decline of $2,263 in the September quarter. The ABS notes that household net wealth had not declined for two consecutive quarters since the final three months of 2011. Factors such as weaker housing prices and a sharemarket slump weighed on household wealth in the December quarter.

CORPORATES
AUSTRALIAN BUREAU OF STATISTICS, AMP CAPITAL INVESTORS LIMITED, STANDARD AND POOR’S ASX 200 INDEX, HSBC AUSTRALIA HOLDINGS PTY LTD, RESERVE BANK OF AUSTRALIA

Property and share market slump likely to delay retirement plans for over 420,000 Australians

Original article by Roy Morgan
Market Research Update – Page: Online : 17-Dec-18

New research from Roy Morgan shows that the number of Australians who intend to retire in the next 12 months is estimated at 426,000, a 30% increase on the level seen in 2008 when it was 328,000. Men currently represent 220,000 intending retirees. Meanwhile, the average gross wealth (total assets excluding owner-occupied homes) of intending retirees is $331,000, up from $237,000 since 2008. Up to now, superannuation has been playing an increasing role in retirement funding and currently represents 69% of the gross wealth of intending retirees, up from 53% in 2008. Although the average debt level for this group is currently only $26,000, it does reduce their average net wealth to $305,000, which is generally inadequate for self-funded retirement. The overall conclusion is that intending retirees will be relying on government benefits for some time yet, given the fact that the Association of Superannuation Funds of Australia estimates that an individual would need $545k and a couple $640k for a ‘comfortable lifestyle’. Roy Morgan’s Single Source survey is based on in-depth interviews conducted face-to-face with over 50,000 consumers per annum in their homes, including over 400 who intend to retire in the next 12 months.

CORPORATES
ROY MORGAN LIMITED, THE ASSOCIATION OF SUPERANNUATION FUNDS OF AUSTRALIA LIMITED

CBA the most popular bank with wealthiest 10% of Australians

Original article by Roy Morgan
Market Research Update – Page: Online : 8-Oct-18

New research from Roy Morgan shows that the CBA is the clear leader when it comes to banks used by the wealthiest 10% (top decile) of the population, with more than a third (36.7%) being customers. This segment is particularly significant as identified in the "Roy Morgan Wealth Report", which shows that the top decile accounts for 48.3% of Australian households’ net wealth. The big four dominate when it comes to the banks used by the wealthiest 10% of Australians. Individuals in this important segment generally deal with more than one bank, but the banks with the highest penetration are CBA (36.7%), Westpac (25.7%), ANZ (23.7%) and NAB (22.5%). A number of smaller banks have much higher customer penetration in this segment compared to what they have in the total population, including St George (11.3%), ING (7.6%), Macquarie (4.9%) and Citibank (3.9%). These are the latest results from Roy Morgan’s Single Source survey, which is based on in-depth personal interviews conducted face-to-face with over 50,000 Australians per annum in their own homes, including over 5,000 of the wealthiest 10%.

CORPORATES
ROY MORGAN LIMITED, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, WESTPAC BANKING CORPORATION – ASX WBC, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB, ST GEORGE BANK LIMITED, ING BANK (AUSTRALIA) LIMITED, MACQUARIE GROUP LIMITED – ASX MQG, CITIBANK LIMITED