Determinants of Household Weatlh: Assets of Divorcing Couples in Australia

Recent reviews indicate that research on wealth in Australia has been limited by a lack of reliable data. The Economic Consequences of Marital Breakdown Survey containing data on the wealth of couples about to divorce, and items from the National Social Science Survey, provide new data for analysis. Shares of net wealth of housing (55 per cent) and superannuation (1 4 per cent) are comparable to those in previous studies. A 'wealth function' was developed taking account of age, gender, years of schooling and further education. There was a 2.6 per cent gain for each year of age and a decumulation of assets after age 58 years. Each year of schooling adds another 10 per cent to net wealth. There is a 16 per cent gain for those who have undertaken some further education after completing school. Some 22 per cent of adult Australians report ever receiving an inheritance. This new information begins to provide some of the answers on 'how' and, by inference, 'why' Australian households save.