For years we have been warned to expect a massive transfer of wealth from the Baby Boomer generation and finally it has really gathered pace.
Analysis by accounting firm KPMG has shown a serious amount of “cashing up” by Boomers – those born between 1946 and 1964 – with property sales and downsizing being used to beef up superannuation and cash reserves.
That is a massive change for a generation known for their love of property – a love that has played a massive part in making them the wealthiest generation as property prices have risen much faster than wages.
Boomers Maxing Out Cash and Super
Terry Rawnsley, an urban economist at KPMG who conducted the study, said Boomers now hold more in cash and super than any generation, highlighting a move to safe, liquid assets in retirement.
Some of this wealth is also being re-distributed to younger generations – usually children and grandchildren – as Boomers try to help following generations achieve some of the things they took for granted, such as property ownership.
“The great wealth transfer is in full swing as Baby Boomers start downsizing properties and moving that wealth into cash,” Mr Rawnsley said.
“They are also beefing up their super accounts as they begin to spend in retirement or hand down wealth to their children.”
Transfer Will Hit $3.5 Trillion
The big sell down is expected to eventually total $3.5 trillion as inheritances also start to flow and the biggest generational wealth transfer in history happens.
Already the numbers are starting to pick up the beginnings of this wealth transfer.
They show that while Boomer households still have the highest average household wealth of any generation (almost $2.8 million), Generation X (born between 1965 and 1980) now has the highest average housing wealth at $1.46 million – about $95,000 more than Boomers.
At the same time the average annual parental gift paid to those aged 35 to 54 has jumped 23% since 2013-14 to nearly $25,000, according to the long running annual Household Income and Labour Dynamics in Australia (HILDA) Survey.
The average inheritance received by those aged over 55 also rose by $103,000 during the same period.
Trickle to a Flood
According to a 2021 Productivity Commission report on generational wealth transfers, this trickle will turn into a flood over the coming couple of decades as an expected $3.5 trillion is passed down.
That means more parental gifts and loans are to be expected and also inheritances as the oldest of the Boomers start to turn 80 and pass on their wealth either with warm or cold hands.
Property remains the bedrock of household wealth despite the build-up of superannuation and peaks with an average net wealth of $2.5 million between the age of 55 and 64 years, according to the KMPG study.
Wealth Figures Can Mislead
Even looking across all Australian households, average net worth reached $1.66 million in June 2025, with housing assets accounting for a whopping 70% of that total.
It is important not to lose perspective or hope when seeing these figures and remember that small numbers of very wealthy households have seriously skewed these numbers upwards.
If we use the “middle” or median numbers for household wealth this lowers the figures by up to 45%.
Debts on the Rise As Well
Unsurprisingly with later property purchases, debts reach their high point between the ages of 35 and 45 years, with these households having outstanding loans on average of $531,000.
As I discussed here, some younger households who made well-timed property purchases when the pandemic suppressed prices and interest rates have done particularly well.
The five-year increase of the 25-to-34 household age group has received the largest increase in wealth, up 63% to an average of $550,000 over the five years to 2024-25.
