The financial cannibalisation of younger Australians

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By Leith van Onselen

ABC’s The Business ran a great segment last night on the increasing financial hardship being placed on Australians under the age of 40 in the wake of the results from the Household, Income and Labour Dynamics in Australia (HILDA) survey.

The segment gave a nice run down of the key results from the survey, including:

  • The fall in real household incomes since 2009;
  • The collapse in home ownership among families aged under 40;
  • The surge in housing debt; and
  • Skyrocketing childcare costs.

The segment also noted how retirees are faring very well, by contrast, due to soaring housing wealth and healthy superannuation balances (encapsulated in the below graphic).

Overall, an enlightening but also depressing segment.

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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.