Family Net Worth in New Zealand
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Citation
Statistics New Zealand. (2008). Family Net Worth in New Zealand.
Wellington: Statistics New Zealand
Published in October 2008 by
Statistics New Zealand
Tatauranga Aotearoa
Wellington, New Zealand
_____________________
ISBN 978-0-478-31532-5
Contents
1. Introduction ....................................................................................................... ......1
2. Net worth................................................................................................................. 4
3. Assets ................................................................................................................... 17
4. Debt....................................................................................................................... 23
5. Conclusion ............................................................................................................ 32
Appendix 1 Additional graphs and tables.................................................................. 33
References................................................................................................................ 42
i
ii
Family Net Worth in New Zealand
1. Introduction
Family Net Worth in New Zealand presents information on New Zealand families’
assets and liability holdings. This report is divided in three sections – one dealing
with net worth, one with assets and another with debt. Each section will look at the
similarities and differences of different family types and how net worth varies
according to the characteristics of families. Each section will be divided into two parts
– the first will look at families and the second people who are not living in family
situations.
This report is based on data collected between 1 October 2003 and 30 September
2004 (this period is referred to as 2004 throughout this report) through the Survey of
Family, Income and Employment (SoFIE) wave two (which included the assets and
liabilities module). SoFIE began collecting data in October 2002, and is the largest
longitudinal survey ever run in New Zealand. The primary focus of SoFIE is to look at
the changes in individual, family and household income, and the factors that
influence these changes, such as involvement in the labour force, and family
composition. The survey re-interviews the same group of individuals over eight years
(or 'waves'), in order to build a picture of how their circumstances and lifestyles
change over time. A module on assets and liabilities will be included in every second
wave of the survey.
The data used for this analysis is cross-sectional, although the survey is a
longitudinal one. When the next assets and liabilities module is released, longitudinal
analysis will be possible. This will allow a look at how net worth has changed over
time. This report provides the first detailed description of the level and distribution of
the net worth of New Zealand families. The original Household Savings Survey,
carried out in 2001, was the first major national collection on assets and liabilities in
New Zealand, but it collected information only about the respondent and their
partner, if there was one. This meant no family data was available from the survey.
SoFIE collected assets and liabilities data for the whole household, which has
allowed information about families to be analysed.
For this report, a fairly restrictive definition of a family, based on what was collected
in SoFIE, will be used. A family is either a couple only (defined as two people who
are partnered only with each other, and who can be married, in a civil union or in a de
facto relationship), or a couple or single person in a parent/child relationship (for
example couples with one or more children, or one parent with one or more children).
There can be more than one family in a household, but families that spread across
households are not measured beyond the household that they are interviewed at.
Families may have people living with them who are part of the household but not the
family unit. For example, a couple may live with an elderly parent or a one-parent
family may live with a brother or sister of the parent. The elderly parent or sibling is
not part of the family unit. Non-family members like this are separated out in this
analysis and are analysed separately in two categories – those who live with others
and those who live alone.
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Family Net Worth in New Zealand
Families are a key conduit for social assistance and while information about family
income has always been available, information about wealth has not been regularly
collected. As wealth is unevenly distributed across the population, it is important to
examine which types of families are more likely to have a high level of net worth and
compare them with those who have low net worth. Families with high debt levels are
also of interest to policy makers, since such debt can lead to unpleasant social
consequences if there is not enough money coming in to service it. This data allows
an analysis of debt levels by income, but does not have information on the amount of
money families are using to service the debt (except for mortgage payments).
Although composed of individuals, the family can be seen as an entity in its own
right, because generally family members have a sense of obligation towards one
another and perform functions of care and support that are intimately binding.
Families have always been a fundamental social and economic unit, playing a key
role in personal and group decision making, caring for children and the elderly, and
ownership and inheritance of private assets (Review of Official Family Statistics,
2007). Recent decades have seen increasing diversity in the living arrangements of
families with, for example, children being part of blended families and civil unions
being introduced. Many families also extend beyond the bounds of a single
household. Statistical collections of family data have not always been able to keep up
with these changes. The review of family statistics recently undertaken by Statistics
New Zealand, has aimed to improve the data collected on families.
Purpose and objectives
The purpose of this report is to describe the net worth of New Zealand families.The
analysis presented in this report is by no means exhaustive. While remaining largely
descriptive, the work has nevertheless laid some important ground work for
formulating future in-depth statistical analyses. Further data from SoFIE will allow
longitudinal analysis to be undertaken.
Terminology
For the purpose of this and other reports by Statistics New Zealand, the term net
worth is defined as the difference between the value of total assets and the value of
total liabilities. The term should not be confused with other similar concepts, such as
net wealth, for example, which includes the value of future earning potential.
SoFIE respondents aged 15 years and over provided a best estimate of their assets,
based on their current market value. In the most cases the current market value
differs from the purchase price, but includes a range of factors such as current
market condition, wear and tear of the asset, and price at the latest valuation. Noncommodity assets, such as business equity, that do not have a readily active market
can therefore be difficult to value. Debt is usually easier to measure, as it has a
monetary value.
The core family types used to analyse assets and liabilities and overall net worth in
this paper are:
• couple
• couple with one or more children
• one parent with one or more children.
This breakdown is chosen on the basis that SoFIE can provide a solid sample size
for further analysis. Where possible, however, families are divided into those with
dependent children (aged under 18 years, and not in full-time employment) and those
with adult children.
2
Family Net Worth in New Zealand
Families are composed of people of different ages, and earlier research into net
worth (Cheung, 2007) showed that age was the key reason for differences in net
worth. Because there is no single age for a family, a compromise has to be reached
on how to place a family into a particular age group. There are a number of different
ways this could be done – for example, taking the age of the oldest or the youngest
adult in the family. Because the accumulation of net worth is closely associated with
income over time, another possibility is to use the age of the highest income earner.
All methods of assigning a family age have disadvantages – taking the highest
income earner may result in the adult child of the family representing its age, for
example. Taking the oldest or the youngest adult is arbitrary and may have no link
with levels of net worth. As a result it was decided to adopt the age of the highest
income earner for the purposes of this report.
For completeness, two types of non-family units are also included in the analysis –
non-family members who live alone and non-family members who live with others,
though these will be analysed separately at the end of each section.
Table 1 shows the most detailed level of family types used in the report, mainly for
overview type analysis.
Table 1
Type of Family by Age of Highest Income Earner
2004
Family type
Couple only
Couple only
Couple only
Couple with at least
one dependent child
Couple with at least
one dependent child
Couple with adult
children only1
One parent with at
least one dependent
child
One parent with adult
children only
Age of highest
income earner
(years)
15–44
45–64
65+
15–44
Number of families
in the population
120,300
172,600
123,300
276,000
45+
114,200
72,800
128,400
40,200
Non-family type
Non-family live alone
Non-family live with
others
Number of people
382,200
243,200
Source: SoFIE assets and liabilities module, wave two.
(1) No age breakdown could be analysed for couples with adult children and the two types of
one-parent families because the number of families in the SoFIE sample was too small.
3
Family Net Worth in New Zealand
2. Net worth
Average and median net worth levels in families
The total net worth of families in 2004, as shown in figure 1, was skewed towards
lower values of net worth, with a long tail of higher net worth values. The lowest 20
percent of families had a net worth of $40,600 or less and the highest 20 percent had
net worth of $489,000 or more, but the graph shows that some of this group had a
family net worth over $1,950,000. Families held about $378.2 billion of net worth in
2004, making up around 81 percent of the net worth held by New Zealanders.
Figure 1
Net Worth Distribution of Families
2004
Net worth ($000)
Negative
0–74
75–149
150–224
225–299
300–374
375–449
450–524
525–599
600–674
675–749
750–824
825–899
900–974
975–1,049
1,050–1,124
1,125–1,199
1,200–1,274
1,275–1,349
1,350–1,424
1,425–1,499
1,500–1,574
1,575–1,649
1,650–1,724
1,725–1,799
1,800–1,874
1,875–1,949
1,950+
0
50
100
150
200
250
300
Number of families (000)
Source: SoFIE assets and liabilities module, wave two.
Overall, average and median net worth varied considerably amongst the different
family types. The average net worth ranged from $85,500 for one-parent families with
at least one dependent child to $538,000 for couples with adult children only. Age
and life-cycle stage are strongly associated with the level of family net worth,
reflecting the fact that the more years there are to accumulate assets and pay off
debt the higher the net worth is likely to be.
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Family Net Worth in New Zealand
Figure 2
Family Type by Average and Median Net Worth
2004
Family type
Average
Couple aged under 45 years
Median
Couple aged 45–64 years
Couple aged 65+ years
Couple aged under 45 years with dependent children
Couple aged 45+ years with dependent children
Couple with adult children only
One parent with dependent children
One parent with adult children only
0
100
200
300
400
500
600
Family net worth ($000)
Source: SoFIE assets and liabilities module, wave two.
There was a marked difference between average and median (half above that level
and half below) net worth, reflecting the fact that the distribution of net worth is
skewed towards lower values, with a long tail of higher values. Figure 3 shows the
proportions of each type of family in family net worth quintiles. Quintiles are
calculated by dividing all families into five groups according to the amount of net
worth held. Quintile 1 (under $40,600) contains the 20 percent of families with the
lowest net worth, while quintile 5 (over $489,000) contains the 20 percent with the
highest net worth.
All family types were represented in both the lowest family net worth quintile and the
highest quintile. However, low net worth was most common among families in which
the highest earner was under the age of 45 and among one-parent families. This
emphasises the importance of age in relation to family net worth. One parent with
dependent children families also tended to be young, based on the age of the highest
income earner – 33 percent were aged under 35 years and 75 percent were under 45
years.
5
Family Net Worth in New Zealand
Figure 3
Family Type by Family Net Worth Quintile Distribution
2004
Family type
Family net worth
Couple aged under 45 years
Quintile 1
Under $40,600
Couple aged 45–64 years
Quintile 2
$40,601–130,500
Couple aged 65+ years
Couple aged under 45 years
with dependent children
Quintile 3
$130,501–258,000
Couple aged 45+ years
with dependent children
Quintile 4
$258,001–489,000
Couple with adult children only
Quintile 5
$489,001+
One parent with dependent children
One parent with adult children only
0
20
40
60
80
Percent
Source: SoFIE assets and liabilities module, wave two.
The effect of children on family net worth
Five of the detailed family types being analysed comprise children living with their
parents. For three of these family types, at least one of these children is dependent,
while the other two family types have adult children only. Families with adult children
only were much more likely to have one child (87 percent of one-parent families with
adult children only, and 69 percent of couples with adult children only) than other
family types. For one parent families with at least one dependent child, 44 percent
had one child, 36 percent had two, and 20 percent had three or more.
Couple with children families
One way of looking at the effect of children on family net worth is to look at the
difference between families with children, compared with couple only families. It
would be expected that couples with children would have a lower family net worth
than couple only families, because of the expense of raising children. However,
couple only families aged under 45 had a lower average and median net worth than
couples in the same age group who had at least one dependent child. A clue to the
reason for this can be found in the different age structures of the two family types.
Around 73 percent of those living in couple only families where the highest income
earner was aged under 45 were aged under 35. This compares with 52 percent of
adults (including any adult children) being aged between 35 and 44 in families of
couples with dependent children where the highest income earner was aged under
45.
It is also useful to look at the effect of an extra child on the family net worth of
families with children, as set out in table 2.
6
Family Net Worth in New Zealand
Table 2
The Average and Median Net Worth of Couple Families with Children
By number of children, 2004
Family type
Couple aged under 45
with at least one
dependent child
1 child
2 children
3 or more children
Couple aged over 45
with at least one
dependent child
1 child
2 children
3 or more children
Couple with adult
children only
1 child
2 or more children(1)
Average family net
worth ($)
Median family net
worth ($)
230,300
302,400
316,600
106,500
159,000
135,000
502,400
565,100
511,500
286,300
321,800
272,800
558,700
492,000
333,200
334,500
(1) The number of families in this group is small and subject to high sampling errors, so it is
not possible to analyse the data to the same level as other family types.
Source: SoFIE assets and liabilities module, wave two.
Couples with one dependent child had a lower average and median family net worth
than families with two or more children. This is likely to be because these families
were more likely to be younger and therefore have had less time than their
counterparts to accumulate wealth.
Another way of looking at the data is to consider the effect of the age of the youngest
child for families with dependent children. One-quarter of couples aged under 45 with
dependent children had a youngest child aged zero or one year, with a similar
proportion having a child aged between two and four years. On the other hand,
nearly half of those aged 45 and over had a youngest child aged between 13 and 17
years.
Figure 4 shows how the family net worth of couples with dependent children was
influenced by the age of their youngest child. It shows that for couples aged under 45
years net worth rose steadily until the youngest child was aged 12. Family net worth
dropped for those whose youngest child was a teenager.
Because few couples aged 45 and over had a youngest child aged under five years,
the proportions are very small and must be treated with caution. For those aged 45
years and over there is no drop in net worth when the youngest child is a teenager.
7
Family Net Worth in New Zealand
Figure 4
Average Family Net Worth of Couples with Dependent Children
By age group of couple
2004
600
Family Net Worth ($000)
500
400
300
200
100
0
0–1
2–4
5–8
9–12
13–17
Age group of youngest child (years)
Couple aged under 45 years
Couple aged 45+ years
Source: SoFIE assets and liabilities module, wave two.
Note: The number of families where the highest income earner is aged 45 years and over and the
youngest child is under 5 years is small and the data should be treated with caution.
One parent with children families
Because there are relatively small numbers of one-parent families with adult children
only, and because the vast majority of these families have just one child (87 percent),
they are not included in this analysis, because its purpose is to look at the effect of
children on family net worth.
For one parent with dependent children families, the table below shows that having
three or more children lowered average family net worth considerably, but the effect
on median family net worth was not so pronounced.
Table 3
Average and Median Family Net Worth for One-parent families
with Dependent Children
By number of children, 2004
Family type
One parent with
dependent children
1 child
2 children
3 or more children
Average family net
worth ($)
Median family net
worth ($)
81,600
96,400
74,300
21,700
35,100
30,000
Source: SoFIE assets and liabilities module, wave two.
Figure 5 shows that the net worth of one-parent with dependent children families is
affected by the age of the youngest child. Family net worth rises as the age of the
youngest child rises, particularly after 5 years of age.
8
Family Net Worth in New Zealand
Figure 5
Average and Median Family Net Worth of One-parent Families
By age of youngest child
2004
200
Family net worth ($000)
150
100
50
0
0–1
2–4
5–8
9–12
13–17
Age group of youngest child (years)
Average
Median
Source: SoFIE assets and liabilities module, wave two.
The effect of income on family net worth
There is a relationship between annual family income and family net worth. This
relationship varies in different family types according to age and the stage of the life
cycle that the family is at. The relationship between low income and low net worth is
particularly strong across all family types, but the relationship between high income
and high net worth differs according to age. Couples aged under 45 had a very weak
relationship between high income and high net worth – only 17 percent of these
couples in the top income quintile were also in the top net worth quintile. This
compared with 64 percent of couples where the highest income earner was aged
between 45 and 64 years and 75 percent of couples 65 and over.
Figure 6
Family Income Quintile by Family Net Worth Quintile
Couples aged under 45 years
2004
60
Percent
40
20
0
Under $28,800
$28,801–47,800
$47,801–68,700
$68,701–100,100
$100,101+
Family income quintile
Family net worth
Quintile 1
Under $40,600
Quintile 2
$40,601–130,500
Quintile 3
$130,501–258,000
Source: SoFIE assets and liabilities module, wave two
9
Quintile 4
$258,001-$489,000
Quintile 5
$489,001+
Family Net Worth in New Zealand
One parent with dependent children families had the highest proportion of families in
the bottom quintile of net worth out of all family income quintiles. Almost threequarters of one parent with dependent children families in the lowest income quintile
were also in the lowest net worth quintile, with significant proportions in family income
quintiles two and three also in the lowest family net worth quintile.
In other family types, the relationship between high family income and high family net
worth became more prevalent with the age of the family. Couples where the highest
income earner was aged 65 years and over had the strongest relationship between
high income and high family net worth.
See appendix 1 for a full set of graphs showing family net worth by family income
quintiles for all family types.
The effect of age on family net worth
Throughout this report the age of the highest income earner has been used to
classify families into a particular age group and life cycle stage. The analysis in this
section, however, is based on the ages of the adults living in families. The main
difference between the two approaches is that when using the age of the highest
income earner, each family is counted once; when using the age of individuals, each
family can be counted more than once, depending on the number of adults living in
the family. For example, in a family that contained a 37-year-old, a 29-year-old and a
13-year-old, the two adults would be in two different age groups, so the family would
be counted twice – once for people aged 25–34 years and once for people aged 35–
44.
Figure 7 gives an overview of the age structure of adults living in each broad family
type. It shows that a large proportion of couple only families were aged 55 years and
over. The most common age group for couples with at least one dependent child was
35–44 years. For couples with adult children only the age was bimodal, with the
majority of adult children at the young end and their parents 45 years and over. Oneparent families with at least one dependent child were younger, whereas those with
adult children only were more evenly spread across the age groups.
10
Family Net Worth in New Zealand
Figure 7
Family Type by Age Distribution of Adults Living in Families
2004
Family type
Age group (years)
Couple
15–24
25–34
Couple with dependent children
35–44
45–54
Couple with adult children only
55–64
65+
One parent with dependent children
One parent with adult children only
0
10
20
30
40
Percent
Source: SoFIE assets and liabilities module, wave two.
In general, family net worth was lower for those below age 35, but increased
considerably in the ages between 35 and 64 years. The 55–64-year age group
represented the peak of family net worth, with average net worth just above or below
half a million dollars for couples, couples with dependent children, and couples with
adult children only. The median family net worth for couples with dependent children
and one-parent families was lower than the other couple-based families, but were still
at a peak in this age group.
A full set of graphs showing age group by family net worth is contained in appendix 1.
The vast majority of people aged 65 years and over lived in ‘couple only’
relationships (note that this analysis does not include older people living alone – they
are included in the non-family analysis.) The average net worth of couple only
families aged 65 and over was $488,000, and the median family net worth was
$303,700. Both average and median family net worth tended to decrease with age
after 65 years, though the median decreased more slowly than the average (another
indicator of the long tail in the distribution of net worth). This is shown in the table 4.
Table 4
Average and Median Family Net Worth
For couples where at least one person is aged 65 years and over, 2004
Couples where at least one
person is aged
65–69 years
70–79 years
80 years and over
Average family net worth
($)
594,800
426,000
400,200
Source: SoFIE assets and liabilities module, wave two.
11
Median family net worth
($)
343,000
293,500
283,900
Family Net Worth in New Zealand
The effect of qualifications on family net worth
This analysis also looks at the characteristics of individuals living in families (families
can be counted more than once, depending on the qualifications of the individual
members of the family). Analysis by the qualification of family members showed that
educational qualifications have a considerable effect on family net worth. This can be
illustrated in the table below, which shows the combined effect of qualification and
age. The $857,100 average family net worth for university qualified people living in
65 + couple families was the highest for any group in this report.
Table 5
Average Family Net Worth for Individuals Living in Couple Only Families
By age and highest school qualification, 2004
Family type
Couple only
aged under 45
Couple only
aged 45–64
Couple only 65+
No qualifications
School
Vocational
Average family net worth ($)
University
93,000
190,600
200,200
186,100
474,900
547,900
542,900
658,900
432,200
487,800
548,300
857,100
Source: SoFIE assets and liabilities module, wave two.
For other family types the trend of increasing family net worth with increasing
educational qualifications also held true. For example, for couples with dependent
children where the highest income earner was aged under 45 years, average family
net worth was $231,700 for people with no qualifications and $369,700 for those with
a university qualification. For one-parent families with dependent children the figures
were $75,300 and $167,900, respectively.
See appendix 1 for a table showing family net worth by highest qualification for all
family types.
The effect of ethnicity on family net worth
Like all other variables that relate to an individual rather than a family, the approach
taken here is to look at families with at least one person having the target ethnicity.
Total response ethnicity is used. An article in a recent Social Policy Journal (Callister
et al, 2007) talked about family ethnicity as “knitting a jumper using two woolly
concepts” and pointed out that both family and ethnicity concepts are difficult to
define. The authors looked at various options for outputting data on ethnic families
and said the method being used here was one of two supported options.
Families with at least one person of European ethnicity were by far the most common
families, reflecting the population share that people of European ethnicity have (68
percent of the population was European at the time of the 2006 Census2). This was
the only ethnic group where five different family types were able to be presented (all
other ethnic groups were too small to do this, so core family-type data is used). For
families with at least one person of European ethnicity, one-parent families with
dependent children were strongly concentrated in the lower family net worth quintiles,
with 8 out of 10 families of this type in the two lowest family net worth quintiles.
(2) This figure excludes those who gave New Zealander as their ethnicity. If this group is
included in the European ethnic group, the percentage identifying as European rises to 78
percent, which is close to the 2001 Census figure of 80 percent.
12
Family Net Worth in New Zealand
European ethnicity couples with adult children only were the most likely family type to
be in the top two quintiles (just over two-thirds of these families are in these two
quintiles).
The average and median family net worth was relatively high in all family types
containing at least one person of European ethnicity, even though big variation still
existed between family types. Couple and couple with children European ethnicity
families both had average family net worth in the mid-$400,000 level.
Among families where at least one person was of Māori ethnicity, almost 7 in 10 oneparent families were in the lowest quintile, and very few were in the highest quintile.
Families containing at least one person of Pacific ethnicity had the lowest overall
family net worth of all the ethnic groups analysed. Very few families had a level of
family net worth that put them in the top family net worth quintile, and 86 percent of
Pacific ethnicity one-parent families were in the bottom quintile.
The most striking feature of the average and median family net worth of families with
at least one person in the ‘other’ ethnic group, was the distribution of family net worth
amongst one-parent families. The average family net worth for this family type and
ethnic group was $210,700, compared with $161,800 for one-parent families of
European ethnicity and under $50,000 for families of Pacific and Māori ethnicities.
Figure 8
Family Type by Family Net Worth Quintile
Other ethnic group
2004
50
Percent
40
30
20
10
0
Couples
Couples with children
One parent with children
Family type
Family net worth
Quintile 1
Under $40,600
Quintile 2
$40,601–130,500
Quintile 3
$130,501–258,000
Quintile 4
$258,001–489,000
Quintile 5
$489,001+
Source: SoFIE assets and liabilities module, Wave 2.
See appendix 1 for a full set of graphs for family net worth by ethnic group.
The net worth of non-family members
There are two types of non-family members. The first type is people who live alone in
one-person households. The second is a mixture of two sorts of living arrangements
– people who live with a family but are not part of the family, and people who live with
other people who do not themselves form a family (for example, flatmates).
13
Family Net Worth in New Zealand
The two types of non-family members had very different characteristics. The median
and average age of non-family members who lived alone was 55 years, compared
with an average of 35 years and a median of 28 years for those who lived with
others.
Overall, net worth was lower for non-family members who live with others, compared
with those who lived alone. Eighteen percent of non-family members who lived with
others had negative net worth – this was the highest rate for all family and non-family
types. This group was more likely to include young people with high student loan
debt and not much in the way of assets. In comparison, only 6 percent of non-family
members living alone had negative net worth.
Net worth by age
For both non-family members who lived alone and those who lived with others,
average net worth increased with age until age 65 years. In the case of non-family
members who lived alone, median net worth did not decline until age 75 years.
Table 6
Average and Median Net Worth for Non-family Members
By whether they live alone or live with others, 2004
Net worth of non-family members who live alone
Age group (years)
Average ($)
Median ($)
15–34
48,700
14,400
35–44
166,500
84,600
45–54
202,500
122,400
55–64
308,200
169,700
65–74
224,300
173,900
75+
232,700
170,600
Net worth of non-family members who live with others
Age group (years)
Average ($)
Median ($)
15-24
9,200
2,800
25-29
32,600
17,000
30-34
83,400
34,300
35-44
85,600
53,700
45-54
170,600
86,700
55-64
176,700
100,900
65+
134,800
63,300
Source: SoFIE assets and liabilities module, Wave 2.
Net worth by qualification
For people who lived alone, the level of the highest qualification made a difference to
the average and median levels of net worth. Those with a university qualification had
an average net worth of $227,200 compared with $170,200 for those who had no
qualification. The average levels for those with school and vocational qualifications
were $173,600 and $197,600, respectively.
However, for non-family members living with others, qualifications made little
difference to average and median net worth, reflecting the fact that this group had a
young age profile and many may not have finished their studies.
14
Family Net Worth in New Zealand
Figure 9
Average and Median Net Worth for People Who Live Alone
and for People Who Live With Others
By highest qualification
2004
250
Net worth ($000)
200
150
100
50
0
Average
Live alone
Median
Live alone
Average
Live with others
Median
Live with others
Net worth ($000)
None
School
Vocational
University
Source: SoFIE assets and liabilities module, wave two.
The distribution of net worth by sex
Figure 10 shows that the distribution of net worth is quite different for males and
females, particularly for those who live alone.
Among those who lived alone, 60 percent of females were in the top two family net
worth quintiles, compared with 45 percent of males. Females in this group are much
more likely to be older – nearly half (48 percent) of women who lived alone were
aged 65 years and over, compared with 22 percent of males. Conversely, half (49
percent) of males who lived alone were aged under 45 years, compared with 25
percent of females. The different age structure accounted for a lot of the differences
in family net worth, reflecting the fact that the more years you have to accumulate
assets and pay off debt, the higher your net worth is likely to be. Many of the older
women were likely to be widows, who had net worth built up over time when they
were part of a couple.
For non-family members who lived with others, the picture was very different, and the
majority of both males and females in this group were under 45 years (79 percent of
males and 70 percent of females). Both sexes had a distribution skewed to the lower
values of net worth, but females had a greater proportion in the bottom two quintiles
than males (64 percent and 59 percent, respectively).
15
Family Net Worth in New Zealand
Figure 10
Net Worth Quintile for Non-family Members
By living situation and sex
2004
40
Percent
30
20
10
0
Quintile 1
Under $4,200
Quintile 2
$4,201–30,000
Quintile 3
$30,001–99,800
Quintile 4
$99,801–218,000
Quintile 5
$218,001+
Family net worth
Living situation by sex
Live alone
Males
Live with others
Males
Live alone
Females
Source: SoFIE assets and liabilities module, wave two.
16
Live with others
Females
Family Net Worth in New Zealand
3. Assets
This section looks at the type of assets families have and the value of them. The
SoFIE questionnaire collected information about the following assets:
•
•
•
•
•
•
•
•
•
•
•
property
superannuation/life insurance
bank accounts
investments
credit cards
business
trusts
timeshares
vehicles/leisure
household items
other assets.
Because relatively small numbers of families held superannuation/insurance,
investments, credit card positive balances, business, trusts, timeshares or other
assets, this analysis will concentrate on the remaining asset types, which are owned
by a reasonable proportion of families (though all will be included when total assets
are discussed). All of the asset types not covered had a median value of zero (which
means at least half did not have the asset) for all family types.
Assets owned by families
The total value of assets held by families in 2004 was $454.8 billion dollars.
Figure 11 shows the value of family assets averaged over all families, whether or not
they had assets, ranged between $596,600 and $634,900 for couples aged 45–64,
couples aged 45 and over with dependent children, and couples with adult children
only. For the next group, the average was $505,400 for couples aged 65+ and
$391,500 for couples under 45 with dependent children.
Considerably lower average family assets were experienced by couples aged under
45 ($295,500) and one-parent families with at least one dependent child ($112,900).
Age is again a factor here, with older families having had more time to accumulate
assets.
The median value of family assets ranged from $442,700 for couples with adult
children, to $35,100 for one-parent with dependent children families.
17
Family Net Worth in New Zealand
Figure 11
Family Type
By average and median value of assets
2004
Family type
Average
Couple aged under 45 years
Median
Couple aged 45–64 years
Couple aged 65+ years
Couple aged under 45 years with dependent children
Couple aged 45+ years with dependent children
Couple with adult children only
One parent with dependent children
One parent with adult children only
0
200
400
600
800
Value of assets ($000)
Source: SoFIE assets and liabilities module, wave two.
Types of asset
The most common type of asset held by all core families was, not surprisingly,
household items. Ownership of a vehicle was the next most common asset, followed
by bank deposits and property assets. As stated earlier, very few families had
positive credit card balances, timeshares, or trust assets.
Figure 12
Asset Ownership
By core family type
2004
Asset type
Couples
Household items
Couples with children
Vehicle
Bank deposit
One-parent families
Property
Investment
Superannuation/insurance
Business
Trust
Credit card
Timeshare
Other
0
20
40
60
Percent
Source: SoFIE assets and liabilities module, wave two.
18
80
100
Family Net Worth in New Zealand
Property assets
Around 80 percent of couples aged 45–64, couples 65 and over, couples 45 and over
with dependent children, and couples with adult children reported having property
assets, as shown in figure 13. This can include the family home, as well as
investment properties or holiday homes. Younger families were less likely to have
property assets, with one parent with dependent children families having the lowest
incidence rate at 30 percent.
Figure 13
Family Type by Property Asset Ownership
2004
Family type
Couple aged under 45 years
Couple aged 45–64 years
Couple aged 65+ years
Couple aged under 45 years with dependent children
Couple aged 45+ years with dependent children
Couple with adult children only
One parent with dependent children
One parent with adult children only
0
20
40
60
80
100
Asset (percent)
Source: SoFIE assets and liabilities module, wave two.
Property assets made up between 39 and 47 percent of total family assets averaged
over all families (whether or not they owned property). The median value of property
assets for all one-parent families was zero, meaning at least half of this type of family
did not own property with or without a mortgage. The average value of property
assets across all one-parent families was $70,100 (it was $180,600 for those oneparent families who had property). For other family types, the median property values
were highest for couples with adult children only. The highest average property
values were similar for couples where the highest income earner was aged between
45 and 64 years, couples with adult children only, and couples with at least one
dependent child where the income earner was aged 45 years and over.
The graph below shows the importance of property assets to the level of family net
worth. In all family types shown there was a much higher proportion in the lowest
quintile of net worth when there were no property assets, compared with when there
were. The biggest difference was among one-parent families, particularly those with
dependent children. Thirteen percent of one-parent families with dependent children
were in the lowest net worth quintile when the family owned property, compared with
82 percent when they did not.
19
Family Net Worth in New Zealand
Figure 14
Family Type and Property Asset Ownership
By family net worth quintile
2004
100
Percent
80
60
40
20
0
Have
property
No
property
Couples
Have
property
No
property
Couples with
dependent children
Have
property
No
property
Couples with adult
children only
Have
property
No
property
One parent with
dependent children
Have
property
No
property
One parent with
adult children only
Family type and presence of property assets
Family net worth
Quintile 1
Under $40,600
Quintile 2
$40,601–130,500
Quintile 3
$130,501–258,000
Quintile 4
$258,001–489,000
Quintile 5
$489,001+
Source: SoFIE assets and liabilities module, wave two.
Bank deposit assets
The majority of all family types had bank deposit assets. One-parent families with at
least one dependent child had the lowest average ($3,500) and median ($200) value
of bank deposits of all family types who had them. Couples aged under 45 with at
least one dependent child were next-lowest, with an average value of $11,500 and a
median value of $1,800. The family type with the highest average and median values
for bank deposits (averaged over those who had bank deposits) was couples only,
where the highest income earner was aged 65 years and over. For this family type
the average was $55,900 and the median was $15,000. All the median values were
much lower than the average values, indicating that most families have a relatively
low bank balance.
Bank deposits made up around 5 percent of total assets over all family types. They
were about 10 percent of total family assets for couples where the highest income
earner was aged 65 years and over, but for families with dependent children they
only made up between 2 and 4 percent of total family assets.
The presence of bank deposits had much less impact on the distribution of family net
worth quintiles among most family types than property assets had. This is because,
as explained above, the value of these assets is low for many families. For most
family types, having bank deposits meant they were more likely to be in the top family
net worth quintile.
20
Family Net Worth in New Zealand
Figure 15
Family Type and Presence of Bank Deposits
By family net worth quintile
2004
100
Percent
80
60
40
20
0
Have
deposits
No
deposits
Couples
Have
deposits
No
deposits
Couples with
dependent children
Have
deposits
No
deposits
Couples with adult
children only
Have
deposits
No
deposits
One parent with
dependent children
Have
deposits
No
deposits
One parent with
adult children only
Family type and presence of bank deposits
Family net worth
Quintile 1
Under $40,600
Quintile 2
$40,601–130,500
Quintile 3
$130,501–258,000
Quintile 4
$258,001–489,000
Quintile 5
$489,001+
Source: SoFIE assets and liabilities module, wave two.
The assets of non-family members
Non-family members who lived alone had more assets than non-family members who
lived with others. The average value of assets for people who lived alone was
$215,300 and the median value was $137,000. In contrast, the values for non-family
members who lived with others were $91,400 and $22,100, respectively.
The main difference between the two non-family groups for the type of assets owned
was with property assets. Fifty-eight percent of non-family members who lived alone
owned property, compared with 26 percent of those who lived with others. Those
who lived alone have a much older age profile than the other group, and the data
shows that families with older people are also more likely to own property.
21
Family Net Worth in New Zealand
Figure 16
Asset Type for Non-family Members
By living situation
2004
Asset type
Live alone
Household items
Live with others
Vehicle
Bank deposit
Property
Investment
Superannuation/insurance
Business
Credit card
Trust
Timeshare
Other
0
20
40
60
Percent
Source: SoFIE assets and liabilities module, wave two.
22
80
100
Family Net Worth in New Zealand
4 Debt
This section looks at the level and type of debt that families have. The types of debt
included are:
• mortgages
• bank debt
• credit card debt
• other debt.
The value of total debt held by families in New Zealand in 2004 was $76.6 billion.
Figure 17 shows how the level of debt varied by family type for families who had
debt. Couples aged 45 years and over with dependent children, and couples aged
under 45 years had the highest average debt levels with around $113,200 each,
compared with just $14,500 for couples aged 65 and over. Couples aged under 45
with dependent children and couples with adult children also experienced fairly high
debt levels in 2004, with averages of $110,700 and $107,900, respectively. Oneparent families have relatively low levels of average debt. Families with a high level
of debt are those in prime age groups for purchasing and paying for property.
Figure 17
Family Type by Average and Median Debt
For those families who had debt
2004
Family type
Average
Couple aged under 45 years
Median
Couple aged 45–64 years
Couple aged 65+ years
Couple aged under 45 years with dependent children
Couple aged 45+ years with dependent children
Couple with adult children only
One parent with dependent children
One parent with adult children only
0
20
40
60
80
Family debt ($000)
Source: SoFIE assets and liabilities module, wave two.
23
100
120
Family Net Worth in New Zealand
Types of debt
Credit card debt was the most common type of debt for all family types except one
parent with dependent children, where other debt was more common. Other debt
includes store cards, hire purchase and non-bank loans. For both types of couplebased families with dependent children, for those aged 45–64 years, and for those
aged 65 years and over, mortgage debt is the second most common debt. Other debt
is the second most common debt for most of the remaining family types. Overall, 76
percent of families had non-mortgage debt, comprising any combination of credit
card, bank loan or other debt, and 42 percent had mortgage debt.
Figure 18
Family Type by Type of Debt
2004
Family type
Mortgage
Couple aged under 45 years
Bank
Couple aged 45–64 years
Credit card
Couple aged 65+ years
Other
Couple aged under 45 years with dependent children
Couple aged 45+ years with dependent children
Couple with adult children only
One parent with dependent children
One parent with adult children only
0
20
40
60
80
Percent
Source: SoFIE assets and liabilities module, wave two.
Debt to income ratio
The level of debt to level of income ratio gives an idea of how easy it is for families to
pay off debt. However, the aggregate data presented here cannot reflect the situation
of individual families and only gives an idea of which types of families are likely to
have a high level of debt compared with their income.
On average, for every $100 of income for couples aged under 45 years with
dependent children, there was an average debt of $162 and a median debt of $109.
For couples only aged 45–64 the average debt per $100 of income was $1,100, but
the median was only $38. One-parent families with dependent children had an
average of $112 and median of $29 of debt for every $100 of income, similar to
couples aged under 45, where the figures were $105 and $88, respectively. The
lowest level of debt per $100 of income was for couples aged 65 and over, where the
average was $37 and the median $2.
24
Family Net Worth in New Zealand
Mortgage debt
Not surprisingly, mortgage debt is not as common as property assets, since a
sizeable proportion of families own property without a mortgage. However, in three
family types – all couple-based families with children – over half of the families had a
mortgage. One-parent families and couples aged 65 and over were much less likely
than other families to have a mortgage.
Figure 19
Family Type by Proportion with a Mortgage
2004
Family type
Couple aged under 45 years
Couple aged 45–64 years
Couple aged 65+ years
Couple aged under 45 years with dependent children
Couple aged 45+ years with dependent children
Couple with adult children only
One parent with dependent children
One parent with adult children only
0
20
40
60
Mortgage (percent)
Source: SoFIE assets and liabilities module, wave two.
Mortgages make up a large proportion of the value of family debt. Over all families,
mortgages make up 81 percent of total debt and there is little variation across family
types. Couples with adult children have the lowest proportion of debt covered by
mortgages, at 71 percent.
For those families with a mortgage, the highest average and median level of the
mortgage is experienced by couples aged under 45 years. The average mortgage
amount for this family type was $188,600 and the median amount was $137,500.
Couples with dependent children, irrespective of the age of the highest income
earner, had average mortgage levels around $148,000. Mortgage levels of oneparent families with a mortgage were relatively low at around $87,000, and were very
similar for both one-parent families with dependent children and one-parent families
with adult children.
25
Family Net Worth in New Zealand
Figure 20
Family Type by Average and Median Mortgage Amount
For those families who had a mortgage
2004
Family type
Average
Couple aged under 45 years
Median
Couple aged 45–64 years
Couple aged 65+ years
Couple aged under 45 years with dependent children
Couple aged 45+ years with dependent children
Couple with adult children only
One parent with dependent children
One parent with adult children only
0
50
100
150
200
Mortgage ($000)
Source: SoFIE assets and liabilities module, wave two.
Non-mortgage bank loan debt
Over all families, 28 percent had a bank loan, but there was some variation among
the different family types, related to the age of the family. Three family types had
around 35 percent of families with a bank loan: couples aged under 45, couples aged
under 45 with dependent children, and couples with adult children only. For oneparent families, around 30 percent had a bank loan. Couples aged between 45 and
64 and couples aged 65 and over had the lowest incidence of bank loans.
Figure 21
Family Type by Proportion with Bank Loan
2004
Family type
Couple aged under 45 years
Couple aged 45–64 years
Couple aged 65+ years
Couple aged under 45 years with dependent children
Couple aged 45+ years with dependent children
Couple with adult children only
One parent with dependent children
One parent with adult children only
0
10
20
30
Bank loan (percent)
Source: SoFIE assets and liabilities module, wave two.
26
40
Family Net Worth in New Zealand
The value of bank loans for those who had a loan was relatively low, especially
compared with the value of mortgages, and these loans made up 11 percent of the
total family debt. The highest value bank loans were in couple aged 45–64 families,
where the average loan was $51,200, followed by couple with adult children families
with an average loan of $44,900. These two family types had much bigger value
loans than the rest of the families.
Credit card debt
A large number of families reported having credit card debt in 2004. Couples aged 65
and over and all one-parent families had lower-than-average credit card debt. Around
60 percent of all other family types had this type of debt.
Figure 22
Family Type by Proportion with Credit Card Debt
2004
Family type
Couple aged under 45 years
Couple aged 45–64 years
Couple aged 65+ years
Couple aged under 45 years with dependent children
Couple aged 45+ years with dependent children
Couple with adult children only
One parent with dependent children
One parent with adult children only
0
20
40
60
80
Credit card debt (percent)
Source: SoFIE assets and liabilities module, wave two.
While very common, the amount of credit card debt was, on average, relatively small
and total credit card debt made up only 2 percent of total family debt. Of those who
had credit card debt, the three family types of couples with children, and couples
aged 45–64 years all had an average credit card debt between $3,200 and $3,900,
and a median debt between $1,500 and $2,400. They had the highest levels of
average and median credit card debt of all family types with this type of debt. The
lowest levels of credit card debt were among couples aged 65 and over ($1,700
average and $800 median) and one-parent families with dependent children ($1,900
average and $1,100 median).
27
Family Net Worth in New Zealand
Figure 23
Family Type by Average and Median Credit Card Debt
For those families who had credit card debt
2004
Family type
Average
Couple aged under 45 years
Median
Couple aged 45–64 years
Couple aged 65+ years
Couple aged under 45 years with dependent children
Couple aged 45+ years with dependent children
Couple with adult children only
One parent with dependent children
One parent with adult children only
0
1
2
3
4
Credit card debt ($000)
Source: SoFIE assets and liabilities module, wave two.
Other debt
Other debt includes store cards, hire purchase agreements and loans from non-bank
sources. The family types most likely to have other debt tended to be younger or had
young adults in the family – couples aged under 45 and couples with adult children.
Only two family types stood out for having a low incidence of other debt – couples
aged 45–64 and couples aged 65 and over.
Figure 24
Family Type by Proportion with Other Debt
2004
Family type
Couple aged under 45 years
Couple aged 45–64 years
Couple aged 65+ years
Couple aged under 45 years with dependent children
Couple aged 45+ years with dependent children
Couple with adult children only
One parent with dependent children
One parent with adult children only
0
20
40
Other debt (percent)
Source: SoFIE assets and liabilities module, wave two.
28
60
Family Net Worth in New Zealand
Other debt makes up around 6 percent of total debt. Of the families who had other
debt, three family types have higher average levels of this type of debt: couples aged
under 45 years with dependent children ($14,200 average), couples with adult
children only, and couples aged under 45 years (both with a $12,900 average). In all
cases, though, the median debt is relatively low. Couples aged 65 and over have the
lowest level of other debt, just $2,400 on average, with a median of $1,200.
Figure 25
Family Type by Average and Median Other Debt
For those families who had other debt
2004
Family type
Average
Couple aged under 45 years
Median
Couple aged 45–64 years
Couple aged 65+ years
Couple aged under 45 years with dependent children
Couple aged 45+ years with dependent children
Couple with adult children only
One parent with dependent children
One parent with adult children only
0
5
10
15
Other debt ($000)
Source: SoFIE assets and liabilities module, wave two.
The effect of debt on family net worth
There is no straightforward relationship between debt and net worth, because debt
can be used to purchase assets or used for day-to-day living. However, in all family
types, those with no debt had a greater proportion in the top two family net worth
quintiles than those families with debt. For one parent with dependent children
families, those with no debt had a greater proportion in the bottom two quintiles of
family net worth than those with debt.
29
Family Net Worth in New Zealand
Figure 26
Family Type and Presence of Debt
By family net worth quintile
2004
80
Percent
60
40
20
0
Have
debt
No
debt
Couples
Have
debt
No
debt
Have
debt
Couples with
dependent children
No
debt
Have
debt
Couples with adult
children only
No
debt
One parent with
dependent children
Have
debt
No
debt
One parent with
adult children only
Family type and presence of debt
Family net worth
Quintile 1
Under $40,600
Quintile 2
$40,601–130,500
Quintile 3
$130,501–258,000
Quintile 4
$258,001–489,000
Quintile 5
$489,001+
Source: SoFIE assets and liabilities module, wave two.
Non-family debt
The total debt owed by non-family members in 2004 was $15.1 billion dollars. Like
family members, the majority of that debt was mortgage debt (70 percent). The
remaining debt was accounted for by other debt and bank loans (both 14 percent),
and credit card debt (3 percent).
Non-family members who lived alone were slightly more likely than those who lived
with others to have a mortgage, but were less likely to have a bank loan or other
debt. Other debt, which can include store cards, hire purchase and non-bank loans,
tended to be more common among younger people, and non-family members who
live with others were predominantly aged under 45 years. Thirty-seven percent of
both types of non-family members had credit card debt.
Figure 27
Type of Debt Owed by Non-family Members
2004
Percent
50
40
30
20
10
0
Mortgage
Bank
Credit card
Debt type
Live alone
Live with others
Source: SoFIE assets and liabilities module, wave two.
30
Other
Family Net Worth in New Zealand
The average and median debt levels were relatively low for non-family members. The
median debt level was zero for all but total debt. When averaged over all non-family
members, the amount of mortgage debt – the main debt owed – was $18,200 for
people who lived alone, and $14,800 for those who lived with others. However, when
restricted to only those who have a mortgage, the figures were $91,000 and $87,900,
respectively.
Similarly, when restricted to those who had other debt, the average amount owed by
people who lived with others averaged $12,100 and the median amount was $8,000.
Student loans could account for some of this other debt. For people who lived alone,
the average amount of other debt was $10,200 and the median amount was $4,000.
31
Family Net Worth in New Zealand
5. Conclusion
Family net worth varied across family types, with the older families having higher
family net worth than younger families. Families where the highest income earner
was aged 45 years and over, or families where there were adult children tended to
have higher family net worth. Couples aged under 45 and couples aged under 45
with dependent children tended to have middle range family net worth. One-parent
families with dependent children were consistently the family type with the lowest
family net worth, partly because they were mainly young parents, and partly because
having a partner makes it easier to accumulate assets.
Family income had a big impact on family net worth, with high income generally
being associated with high family net worth, though this was not the case for young
couples. There were also a number of families with high net worth who had low
family income.
Having an educational qualification was associated with higher family net worth and
the effect increased with age. Older people with a university qualification, for
example, had higher net worth than people with the same qualification who were
younger than them. The highest average net worth reported was for universityqualified people living in couple families where the highest income earner was aged
65 years and over.
Credit card debt was the most common type of debt for all family types except oneparent with dependent children families, where other debt was more common. Other
debt includes store cards, hire purchase and non-bank loans.
Having property assets makes a big difference to the level of family net worth. In all
families, a much greater proportion of families were in the lowest quintile for net
worth when property assets were absent. Commonly, 3–4 percent of families with
property assets were in the lowest income quintile, compared with 30–50 percent
without them.
The two groups of non-family members had very different patterns of net worth,
mainly because those who live alone tend to be considerably older than those who
live with others.
32
Family Net Worth in New Zealand
Appendix 1 Additional graphs and tables
Figure 28
Family Income Quintile by Family Net Worth Quintile
Couples aged under 45 years
2004
80
Percent
60
40
20
0
Under $28,800
$28,801–47,800
$47,801–68,700
$68,701–100,100
$100,101+
Family income quintile
Family net worth
Quintile 1
Under $40,600
Quintile 2
$40,601–130,500
Quintile 3
$130,501–258,000
Quintile 4
$258,001–489,000
Quintile 5
$489,001+
Source: SoFIE assets and liabilities module, wave two.
Figure 29
Family Income Quintile by Family Net Worth Quintile
Couples aged 45–64 years
2004
80
Percent
60
40
20
0
Under $28,800
$28,801–47,800
$47,801–68,700
$68,701–100,100
$100,101+
Family income quintile
Family net worth
Quintile 1
Under $40,600
Quintile 2
$40,601–130,500
Quintile 3
$130,501–258,000
Source: SoFIE assets and liabilities module, wave two.
33
Quintile 4
$258,001–489,000
Quintile 5
$489,001+
Family Net Worth in New Zealand
Figure 30
Family Income Quintile by Family Net Worth Quintile
Couples aged 65 years and over
2004
80
Percent
60
40
20
0
Under $28,800
$28,801–47,800
$47,801–68,700
$68,701–100,100
$100,101+
Family income quintile
Family net worth
Quintile 1
Under $40,600
Quintile 2
$40,601–130,500
Quintile 3
$130,501–258,000
Quintile 4
$258,001–489,000
Quintile 5
$489,001+
Source: SoFIE assets and liabilities module, wave two.
Figure 31
Family Income Quintile by Family Net Worth Quintile
Couples aged under 45 years with dependent children
2004
60
Percent
40
20
0
Under $28,800
$28,801–47,800
$47,801–68,700
$68,701–100,100
$100,101+
Family income quintile
Family net worth
Quintile 1
Under $40,600
Quintile 2
$40,601–130,500
Quintile 3
$130,501–258,000
Source: SoFIE assets and liabilities module, wave two.
34
Quintile 4
$258,001–489,000
Quintile 5
$489,001+
Family Net Worth in New Zealand
Figure 32
Family Income Quintile by Family Net Worth Quintile
Couples aged 45 years and over with dependent children
2004
80
Percent
60
40
20
0
Under $28,800
$28,801–47,800
$47,801–68,700
$68,701–100,100
$100,101+
Family income quintile
Family net worth
Quintile 1
Under $40,600
Quintile 2
$40,601–130,500
Quintile 3
$130,501–258,000
Quintile 4
$258,001–489,000
Quintile 5
$489,001+
Source: SoFIE assets and liabilities module, wave two.
Figure 33
Family Income Quintile by Family Net Worth Quintile
One parent with dependent children
2004
80
Percent
60
40
20
0
Under $28,800
$28,801–47,800
$47,801–68,700
$68,701–100,100
$100,101+
Family income quintile
Family net worth
Quintile 1
Under $40,600
Quintile 2
$40,601–130,500
Quintile 3
$130,501–258,000
Source: SoFIE assets and liabilities module, wave two.
35
Quintile 4
$258,001–489,000
Quintile 5
$489,001+
Family Net Worth in New Zealand
Figure 34
Average and Median Family Net Worth for People
Aged 15–24 Years who are Living in Families
By family type
2004
600
Family net worth ($000)
400
200
0
Couple
Couple with
dependent children
Couple with
adult children only
One parent with
dependent children
One parent with
adult children only
Family type
Average family net worth
Median family net worth
Source: SoFIE assets and liabilities module, wave two.
Figure 35
Average and Median Family Net Worth for People
Aged 25–34 Years who are Living in Families
By family type
2004
600
Family net worth ($000)
400
200
0
Couple
Couple with
dependent children
Couple with
adult children only
Family type
Average family net worth
Median family net worth
Source: SoFIE assets and liabilities module, wave two.
36
One parent with
dependent children
One parent with
adult children only
Family Net Worth in New Zealand
Figure 36
Average and Median Family Net Worth for People
Aged 35–44 Years who are Living in Families
By family type
2004
600
Family net worth ($000)
400
200
0
Couple
Couple with
dependent children
Couple with
adult children only
One parent with
dependent children
One parent with
adult children only
Family type
Average family net worth
Median family net worth
Source: SoFIE assets and liabilities module, wave two.
Figure 37
Average and Median Family Net Worth for People
Aged 45–54 Years who are Living in Families
By family type
2004
600
Family net worth ($000)
400
200
0
Couple
Couple with
dependent children
Couple with
adult children only
Family type
Average family net worth
Median family net worth
Source: SoFIE assets and liabilities module, wave two.
37
One parent with
dependent children
One parent with
adult children only
Family Net Worth in New Zealand
Figure 38
Average and Median Family Net Worth for People
Aged 55–64 Years who are Living in Families
By family type
2004
800
Family net worth ($000)
600
400
200
0
Couple
Couple with
dependent children
Couple with
adult children only
Family type
Average family net worth
Median family net worth
Source: SoFIE assets and liabilities module, wave two.
38
One parent with
dependent children
One parent with
adult children only
Family Net Worth in New Zealand
Table 7
Average and Median Family Net Worth
By highest qualification and family type, 2004
No qualification
Family type
Couple only
under 45
Couple only 45–
64
Couple only 65+
Couple under 45
with dependent
children
Couple 45+ with
dependent
children
Couple with
adult children
One parent with
dependent
children
One parent with
adult children
School
Vocational
Average ($)
University
93,000
190,600
200,200
186,100
474,900
432,200
547,900
487,800
542,900
548,300
658,900
857,100
231,700
328,800
278,200
369,700
435,200
556,100
569,100
603,500
428,700
543,800
552,500
641,500
75,300
99,300
90,200
167,900
318,900
327,300
219,700
Median ($)
369,700
Couple only
under 45
52,600
78,100
Couple only 45–
64
279,900
377,000
Couple only 65+
266,900
305,500
Couple under 45
with dependent
children
97,300
134,800
Couple 45+ with
dependent
children
235,500
318,300
Couple with
adult children
258,200
349,100
One parent with
dependent
children
20,300
37,800
One parent with
adult children
141,900
180,400
Note: Families can be counted more than once.
Source: SoFIE assets and liabilities module, wave two.
39
104,200
103,700
373,400
333,100
495,800
566,400
151,500
186,700
327,800
381,400
349,100
447,700
32,600
79,200
108,900
299,100
Family Net Worth in New Zealand
Figure 39
Family Net Worth Quintile by Family Type
European ethnic group
2004
100
Percent
80
60
40
20
0
Couple
Couple with
dependent children
Couple with
adult children only
One parent with
dependent children
One parent with
adult children only
Family type
Under $40,600
$40,601–130,500
$130,501–258,000
$258,001–489,000
$489,001+
Source: SoFIE assets and liabilities module, wave two.
Figure 40
Family Net Worth Quintile by Family Type
Mäori ethnic group
2004
100
Percent
80
60
40
20
0
Couple
Couple with
dependent children
Couple with
adult children only
One parent with
dependent children
One parent with
adult children only
Family type
Under $40,600
$40,601–130,500
$130,501–258,000
Source: SoFIE assets and liabilities module, wave two.
40
$258,001–489,000
$489,001+
Family Net Worth in New Zealand
Figure 41
Family Net Worth Quintile by Family Type
Pacific ethnic group
2004
100
Percent
80
60
40
20
0
Couple
Couple with children
One parent with children
Family type
Under $40,600
$40,601–130,500
$130,501–258,000
$258,001–489,000
$489,001+
Source: SoFIE assets and liabilities module, wave two.
Figure 42
Family Net Worth Quintile by Family Type
Other ethnic group
2004
100
Percent
80
60
40
20
0
Couple
Couple with children
One parent with children
Family type
Under $40,600
$40,601–130,500
$130,501–258,000
Source: SoFIE assets and liabilities module, wave two.
41
$258,001–489,000
$489,001+
Family Net Worth in New Zealand
References
Callister, P, Didham, R, Newell, J, & Potter, D, (2007, November). “Family Ethnicity:
Knitting a Jumper Using Two Woolly Concepts”, Social Policy Journal, 32.
Cheung, J (2007). “Wealth Disparities in New Zealand”, paper presented at SPRE
Conference.
Statistics New Zealand (2007). “Review of Official Family Statistics” Consultation
paper.
42