1 in 10 Aussies are millionaires as median wealth soars: UBS
Australians have the second-highest median wealth in the world, beaten only by Luxembourg, as those in the middle bands are experiencing pronounced wealth growth, UBS has said.
The 16th annual UBS Global Wealth Report found Australia ranks second out of 56 countries based on median wealth per adult of US$268,000 ($415,000), and fifth based on average wealth per adult at US$620,000 ($795,000).
During 2024, median wealth in Australia grew by 11 per cent, while average wealth grew by 4 per cent.
“The difference between these two measures [in Australia] suggests that people in the middle of the wealth scale enjoyed more pronounced wealth growth than their peers in higher wealth bands.”
UBS acknowledged its ranking might surprise people, but that individual wealth and income were “far from straightforward” as the survey includes factors like salaries, entrepreneurial profits, interest rates, taxation levels and real estate ownership.
Unsurprisingly, most of Australia’s wealth is concentrated into non-financial assets, with land and real estate making up close to 70 per cent of this wealth. On the flipside, securities and financial instruments accounted for less than 10 per cent.
“Australia stands out for its real estate that makes up almost 53 per cent of the country’s personal wealth, ahead of the United Kingdom and far ahead of the other markets. In the United States, the proportion is 30 per cent.
“The proportion of wealth held in cash and deposits is lowest in Australia at just above 10 per cent, only half as much as in Switzerland, Singapore and the UK.”
In US dollar terms, Australia counts 1.9 million millionaires and is ranked eighth in UBS’ millionaire index. One in 10 people are a millionaire in USD terms, it said, alongside Hong Kong SAR, the US and the Netherlands.
UBS also flagged the rise of what is described as “EMILLIs”, those everyday millionaires who have US$1–5 million. Individuals in this demographic have quadrupled globally since 2000 to stand at 52 million and account for US$107 trillion in total wealth.
Andrew McAuley, chief of investments at UBS GWM Australia, said: “Like many developed nations, Australia’s demographics are changing and as the population ages we are likely to see a significant wealth transfer over the next 20 to 25 years of around USD170 billion. This transition will likely prompt investors to think about legacy, guiding them to an endowment style asset allocation with long-term resilience.”
AUTHOR
Laura Dew
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