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NewsWe’re the world’s wealthiest people. So why aren’t we celebrating?
We’re the world’s wealthiest people. So why aren’t we celebrating?

We’re the world’s wealthiest people. So why aren’t we celebrating?

Last updated by Chris Zinn on

It’s funny, but I have mixed emotions hearing that Australians are now considered, at least by one measure, to be the wealthiest people on the entire Earth.

We should be joyful that the median, as opposed to average, Aussie adult now has a net worth of $413,260, beating the citizens of Belgium, NZ and Hong Kong.

If you are one of Australia’s 2.2 million millionaires, and an extra 390,000 lucky bastards joined their ranks last year, you might be ecstatic.

(Mind you, we only came seventh on the list of the nations with the greatest proportion of millionaires behind the US, China, Japan, Britain, France, Germany and Canada.)

But somehow, I hadn’t noticed mine or the national mood jump very much when the investment bank Credit Suisse unveiled its global wealth survey recently.

Perhaps it’s because I didn’t notice anything different—no more dollars in the kick. 

Maybe it’s because as we mostly all got more prosperous simultaneously, no one noticed.

Yes, we didn’t have to work harder. We didn’t have to save more. We, or rather those already with paid-off homes and other investments, didn’t have to do a damn thing.

The sting in the tail is that most of this sudden wealth has been generated by rapid asset appreciation, think property and some shares during the pandemic. And as such, it could just as quickly shrink again.

I should say some of us got richer, but not all. The report found the wealthiest one per cent of Aussies had almost 22% of the nation’s wealth in 2021, up from 19.65% just fourteen years before.

So I don’t feel any better or different. It won’t make me spend a red cent more or less, but when the balloon bursts, as they always do, there may be tears.

Assets and house prices will fall, and we will no longer enjoy the heavenly and illusory top spot. The Swiss may rightfully pull rank and regain their crown.

I will feel lousy on hearing Australians are then only the tenth wealthiest nation on Earth, despite there being 192 mainly much poorer other member states of the United Nations. 

I wonder whether it will make us feel any more grateful for what we do have.

Has it changed your view of your nest egg, or maybe you feel worse because you missed out?
 

Originally posted on .

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Andrea
Andrea from NSW commented:

There is a "simple" solution. In most the EU countries (where I'm from) they do also have a kind of superannuation funds etc., but that is only in addition to the pension that every workers accrued in his working life. In Australia we all pay (hefty) taxes, and that's fair enough, but we don't get anything / any $ back from that, just a minimal pension if you're low income etc, while there they back get about 75% or so of all the money that they have payed IN ADVANCE to the pension system. E.g. if you earn a 10K pm salary you get about 7-8K per month back (+ your own Super). Also, you don't have to worry how many years you'll be alive when in pension, the Govt one is provided until you live, while here, you have to pray to die before money (nest egg) are finished. Gents, I love this country, the quality of life here is almost unbeatable, but you don't have an idea of how behind we are and how bad we are ruled by the Govt. Take care 

Robert
Robert from NSW commented:

So. I worked hard for 50 years, bought a house, raised and educated my kids, and then the world's dipsticks intervened and destroyed my retirement. Think GFC, Covid, Reserve Banks, Putin etc etc etc My allocated pension is again disappearing down the gurgler with no hope of recouping my losses, so I'm now 3 parts of the way through yet another year during which I did not become unexpectedly rich. 

chris
chris from NSW commented:

I lost a large proportion of my super to the GFC fortunately l was still working and able to recover those losses. However, l now see my super disappearing in the current financial crisis as a retiree and little chance to recoupe my losses, and the fees bleed it even more. So unfair after a lifetime of hard work. 

Chris
Chris from VIC commented:

I feel comfortable with our investment Super & Shares in retirement not rich just comfortable 81 years old. 

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