Australians are earning more and accumulating wealth, but the gap between reality and perception is staggering. Recent data shows the average household wealth is $1.584 million, yet most Australians believe they need nearly $400,000 a year to feel rich.
This article breaks down the numbers, explores generational differences, and offers tips on realistic financial planning.
How Wealth and Income Have Grown
According to the Measuring What Matters framework, Australian household wealth has climbed steadily over the past two decades:
- 2024: $1.584 million
- 2014: $858,000
- 2004: $530,000
Household wealth includes property, vehicles, bank accounts, shares, and superannuation, minus mortgages, loans, and other debts.
Meanwhile, median disposable household income—income after taxes and levies—was $1,192 per week ($61,984 annually) in 2022-23, up from $876 per week ($45,552 annually) twenty years earlier.
Disposable income reflects the money actually available for living expenses, making it a key measure of financial wellbeing.
How Much Do Australians Think They Need to Be “Rich”?
Finder research reveals a stunning gap between reality and expectation:
- Average Aussie believes they need $398,118 per year to feel rich in 2025
- This is over six times the median disposable household income, a $336,134 gap
- Compared to 2022, the perceived number rose 16% from $336,516
Finder personal finance expert Sarah Megginson notes:
“Only a small percentage of Australians earn near $400,000. True wealth isn’t just about money—it’s about feeling content and fulfilled.”
Wealth Perceptions by Age
Income expectations vary across generations:
| Generation | Amount Needed to Feel Rich |
|---|---|
| Gen Y | $470,881 |
| Gen X | $416,067 |
| Gen Z | $351,793 |
| Baby Boomers | $273,648 |
Men also reported higher targets than women: $393,439 vs $384,424 per year.
Average Savings in Australia
Finder’s survey also highlighted Australians’ saving habits:
- Average savings per month: $984
- Average cash savings: $47,624
- 43% of Aussies have less than $1,000 saved
Megginson emphasizes the importance of realistic financial planning:
“Focus on how much you earn, your everyday expenses, and what you can afford to save. Budgeting tools can help track spending and grow your savings steadily.”
Tips for Closing the Wealth Gap
- Track income and expenses to understand your financial reality
- Set achievable savings goals and automate deposits
- Use free budgeting apps to monitor spending
- Prioritize paying off high-interest debts
- Invest in long-term assets like superannuation or diversified portfolios
FAQs
Q1: What is the average household wealth in Australia?
$1.584 million in 2024.
Q2: How much does the average Aussie earn per year?
Median disposable household income is $61,984 per year.
Q3: How much do Australians think they need to feel rich?
$398,118 per year on average in 2025.
Q4: How much are Australians saving?
Average savings are $984 per month, with $47,624 in cash savings.
Q5: Which generation expects to earn the most to feel rich?
Gen Y, at $470,881 per year.
Conclusion
While Australians are wealthier than ever, the perception of what it means to be “rich” has grown even faster. The $336,000 gap between average income and aspirational wealth shows the influence of lifestyle expectations and social pressures.
By focusing on realistic savings, budgeting effectively, and planning for long-term wealth, Australians can work toward financial security without feeling left behind. True wealth isn’t just numbers—it’s the freedom to live comfortably and confidently.