Australia ranks among the richest countries in the developed world. Data journalist Juliette O’Brien compares the country with its peers and finds a lopsided portfolio that leaves much of that wealth out of reach in daily life.
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Australia occupies an enviable position in global wealth rankings.
In 2025, the UBS Global Wealth Report placed Australia second for median wealth per adult, behind only Luxembourg. Exclude the Grand Duchy (which has a population smaller than the Gold Coast and the world’s highest concentration of millionaires), and Australia is on top of the world.
But does life in Australia feel like life in the world’s richest country?
Australia ranks among the world’s wealthiest countries
Financial assets held directly and indirectly by households (as percentage of household financial assets).
Source: UBS Global Wealth Report 2025
Median wealth reflects the financial position at the middle. It filters out distortion from the extremes, including a small number of billionaires. Australia ranks higher for median wealth than for average wealth, indicating that the country is not only rich but that its wealth is more evenly distributed than that of its peers.
Whether Australian households feel wealthy, however, goes beyond headline rankings. It hinges on where that wealth is stored and how easily it can be used. Here, the picture changes.
Australia’s wealth is concentrated in property. A UBS comparison with Singapore, Switzerland, the United Kingdom and the United States shows real estate accounts for more than half (53%) of Australian household wealth – far higher than in the other markets.
A further 26% is allocated to insurance and pensions. Combined with property, this leaves nearly 80% of Australian wealth locked away in real estate and superannuation.
Nearly 80% of Australian wealth is locked away
Source: UBS
By contrast, Australian households keep relatively little in cash and securities. Just 10% of wealth is held in money and deposits – roughly half the share in Switzerland, Singapore and the United Kingdom.
The result is a lopsided portfolio. Most wealth is illiquid or deferred, while only a small share can be accessed quickly or used flexibly.
A Forbes analysis of OECD household financial indicators shows Australia allocates a high share of wealth to assets that are indirectly controlled or deferred, and a low share to assets that households can access directly and flexibly.
Measured as a share of household financial assets, Australia ranks fourth for financial assets held indirectly and second-last for financial assets held directly.
Australia allocates a share of wealth to
assets that are indirectly controlled
Financial assets held directly and indirectly by households
(as percentage of household financial assets).
For pension entitlements as a share of financial assets, Australia ranks second, reflecting the scale of compulsory superannuation and long-term exposure to equities. By contrast, for equity holdings as a share of financial assets, Australia ranks 26th out of 28 countries, indicating far more limited direct exposure to stocks.
Australia ranks third in the OECD for household debt as a share of net disposable income - a proxy for mortgage exposure. Meanwhile, for cash and deposit holdings as a share of financial assets, it ranks 26th out of 36 countries. Taken together, these indicators illustrate a skew towards illiquid assets over liquid ones, largely driven by housing.
Australia carries high household debt and little cash, demonstrating a skew towards illiquid assets
over liquid ones, driven largely by housing
Household debt as a percentage of net disposable income,
and cash and deposits as a share of financial assets.
These metrics describe how Australian households allocate wealth. Rankings reflect trade-offs, not absolutes. No country can rank highly across every category at once.
Nor is Australia unique. The Netherlands shows a similar portfolio, with wealth concentrated in property and pensions.
But the lopsidedness matters. Liquid financial assets help households pay bills, absorb shocks and exercise choice. Wealth locked in housing and superannuation does not. Widespread home ownership and compulsory super have lifted Australian balance sheets and made its households asset-rich. But it has also left many Australians with limited flexibility to deploy that wealth in day-to-day life.
Australians may be fabulously wealthy, on paper. Enjoying that wealth, however, is harder than the headline numbers suggest.
Data notes: OECD data used to rank countries on individual measures of household finances. These measures have been placed side-by-side on charts 3, 4 and 5 for comparison and contrast. The measures describe different aspects of household finances, and the percentages do not sum to 100. OECD data refers to households and non-profit institutions serving households (NPISH). Data sources: UBS Global Wealth Report 2025; OECD financial indicators dashboard (households and NPISH).
This article represents the views only of the subject and should not be regarded as the provision of advice of any nature from Forbes Australia. The article is intended to provide general information only and does not take into account your individual objectives, financial situation or needs. Past performance is not necessarily indicative of future performance. You should seek independent financial and tax advice before making any decision based on this information, the views or information expressed in this article.
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