More Aussies are millionaires

By Teresa Ooi
October 19, 2007 07:20am

THE ranks of Australia's millionaires swelled by 10.3 per cent to 161,000 last year, with them amassing a fortune of $US510 billion ($570.1 billion).

Their fortune was the third highest in the Asia-Pacific region after Japan at $US3.7 trillion and China at $US1.7 trillion.

Almost half of Australia's millionaires made their money by owning businesses or selling them. About 16 per cent racked up their dollars on the buoyant stock market. Only 13 per cent inherited their wealth.

More than 75 per cent of the country's millionaires are men, with an average age of 50. Only 15 per cent are women, compared with Taiwan's 43 per cent and China's 38 per cent.

"This implies that there is still a glass ceiling in Australia, as we do not have as many women executives earning the big incomes in the top echelon," Capgemini financial services group wealth management head Gregory Smith said.

About 46 per cent of Australia's wealthy are aged between 41 and 55. Only 6 per cent are younger than 40.

China has the largest proportion of young millionaires, with 28 per cent of its 345,000 wealthy people younger than 40, according to the Asia-Pacific Wealth Report produced by investment bank Merrill Lynch and Capgemini.

Australia's new millionaires are worth at least $US3.2 million each - well below Hong Kong's new rich, who have average wealth of $US5.4 million, China's $US5 million and Singapore's $US4.9 million.

Australia has 1120 super-rich - those with more than $US30 million in financial assets.
"While the number of ultra-rich in Australia grew by only 0.7 per cent - slightly lower than the global average of 1 per cent - we still had our fair share of super-rich," Smith said.

"Like most super-rich around the world, they have a complicated lifestyle, with yachts, butlers and several homes across the globe.

"While they enjoy and celebrate their wealth by buying jewellery, baubles, art and vacations, there is a growing concern for the next generation and a growing tendency to give back to society - very much like what Bill Gates has done for charity.

"After acquiring their big yachts and private jets, they plan to give their wealth to the next generation and grandchildren. They are also becoming more altruistic."

This inter-generational transfer of wealth has spurred many wealth financial advisers to have a mature manager team up with a younger colleague to educate and advise the children of the super-rich who will inherit the wealth.

Many are starting to conduct wealth seminars aimed at the younger generation so they don't blow away their family inheritance.

Merrill Lynch global wealth management first vice-president Peter Opie said that with the super-rich becoming more interested in philanthropy, many wealth advisers were thinking of expanding their services to include investment advice in philanthropic enterprises.

(Souce: News.com.au)