Abstract :
This article uses data from the Household, Income
and Labour Dynamics in Australia
(HILDA) Survey to examine the changing distribution
of net worth with age. Even after controlling
for age, the relationship between
income and net worth is positive, except for the
older age groups. Inequality falls as age increases.
The income poor save in different
forms compared with high income individuals
of the same age cohort. Holdings of financial
assets, especially equity investments and superannuation,
are heavily concentrated in the
hands of high income earners, while fixed income
investments are favoured by the elderly
for all income groups.
