The net wealth of Australians is falling.
But don’t panic yet, we’re still worth a lot more than we owe.
This chart from Roy Morgan Research, the 2013 Superannuation and Wealth Management in Australia report, shows the five year trend for net wealth.
Net wealth as a proportion of total assets decreased to 83.6 per cent from 84.1 per cent in the 12 months to June 30 this year.
But our household wealth, which grew 2 per cent to $6,304 billion in the year to June, is still far bigger than total household debt which grew 5.4 per cent to $1,036 billion.
Our homes are still the main component of wealth, representing almost half our worth. Superannuation is the next biggest at 20.9 per cent.
Roy Morgan Research:
Net wealth as a proportion of total wealth has declined over the past five years, with the increases in household wealth largely growing at a slower rate than the increase in debt.
- Personal loans are up by 9.8 per cent
- Mortgages on investment property increased by 9.6 per cent
- Credit cards grew by 7.2 per cent
- Mortgages on owner occupied homes grew 3.7 per cent
The report is based on the Roy Morgan Research finance survey of more than 50,000 people each year.