How is wealth related to age?

Source: HFCS Austria 2017, OeNB.

This graph shows the relationship between household net wealth and age. It also shows this relationship for real wealth and financial wealth.

One can see that net wealth is first increasing in age, and then decreasing.

When looking into the components of net wealth, one can see that the above pattern is very similar for real wealth, but much weaker for financial wealth.

How does income shape the relationship between wealth and age?

Source: HFCS Austria 2017, OeNB.

This graph shows the relationship between household net wealth and age for different income groups.

One can see that for the highest income group net wealth is always increasing with age.

For the lowest income group net wealth remains at a constant low level across age.

Only for the middle income group net wealth is first increasing in age, and then decreasing.

What is the incidence of inheritance across age and wealth?

Source: HFCS Austria 2017, OeNB.

This graph shows the share of households that received an inheritance for different age and wealth groups.

Among the young, who are also in the highest net wealth quintile, one can find the highest incidence of inheritances.

Over 80% of households in the highest net wealth quintile with reference persons aged 16 to 29 years have received an inheritance.

Among all other households in lower net wealth quintiles the incidence of inheritance is consistently below the inheritance share of households in the highest net wealth quintile in all age groups.

How does the relationship between saving incidence and age differ across inheritance status?

Source: HFCS Austria 2017, OeNB.

While the left graph shows the relationship between saving incidence and age, the graph on the right hand side presents the relationship between saving incidence and income. Both graphs further distinguish among households who have received an inheritance and those who have not.

From the left graph, one can see that the saving incidence is first increasing with age, and then decreasing. Furthermore, households who have received an inheritance have a higher saving incidence throughout all age groups.

The right-hand graph indicates that the saving incidence is increasing with income. Again, households who have received an inheritance have a higher saving incidence throughout the whole income distribution.

How does the relationship between saving amount and age differ across inheritance status?

Source: HFCS Austria 2017, OeNB.

While the left graph shows the relationship between saving amount and age, the graph on the right hand side presents the relationship between saving amount and income. Both graphs further distinguish among households who have received an inheritance and those who have not.

The patterns are very similar to the ones seen before with saving incidence.

From the left graph, one can see that the saving amount is first increasing with age, and then decreasing. Furthermore, households who have received an inheritance have a higher saving amount throughout all age groups.

The right-hand graph indicates that the saving amount is increasing with income. Again, households who have received an inheritance have a higher saving amount throughout the whole income distribution.

How does the relationship between saving rate and age differ across inheritance status?

Source: HFCS Austria 2017, OeNB.

While the left graph shows the relationship between saving rate and age, the graph on the right hand side presents the relationship between saving rate and income. Both graphs further distinguish among households who have received an inheritance and those who have not.

The patterns are very similar to the ones seen before with saving incidence and saving amount.

From the left graph, one can see that the saving rate is first increasing with age, and then decreasing. Furthermore, households who have received an inheritance have a higher saving rate throughout all age groups.

The right-hand graph indicates that the saving rate is increasing with income. Again, households who have received an inheritance have a higher saving rate throughout the whole income distribution.

How do the primary saving motives differ by age and inheritance status?

Source: HFCS Austria 2017, OeNB.

The bar chart shows the primary saving motives across age groups for Austrian households who have received an inheritance and for those who have not.

For all age groups, precautionary saving is the most important motive and it tends to increase with age. A further relevant primary saving purpose is the purchase of property and it decreases with age.

In the youngest age group, the share of households stating that precautionary saving is the primary saving purpose increases when the households have received an inheritance.

In the middle and older age groups, the share of households regarding the education/support for children as the most important purpose of saving increases when the households have received an inheritance.

Who has received inheritances?

Source: HFCS Austria 2017, OeNB.

The bar charts show the share of households that received an inheritance for different groups regarding household size, age, education and homeownership status.

The share of households who have received an inheritance increases with household size, age and education.

While about 20% of the renters report having received an inheritance, the corresponding amount for the homeowners is almost 60%.

How often have households received inheritances?

Source: HFCS Austria 2017, OeNB.

The bar chart at the top shows the number of inheritances received among households with inheritances and the one at the bottom breaks it down for different employment groups.

Among the households that have received some inheritance, the vast majority of them (76%) have received it only once, 19% have received two inheritances, and 5% have received three or more.

Receiving more than one inheritance is very common among farmers and, to a much lesser extent, among self-employed.

At what age have households received inheritances?

Source: HFCS Austria 2017, OeNB.

This graph shows the mean age of the oldest household member at the time when the household received the most valuable inheritance for different years of inheritance.

One can see that the mean age at inheritance is increasing across time.

While the oldest household member of households who received their most valuable inheritance in the early 60s was on average 21 years old at the time of inheritance, this mean age increases to 45 years for households who received their most valuable inheritance in 2015 or later.

What type of inheritances have households received?

Source: HFCS Austria 2017, OeNB.

The graphs show the share of households with specific types of inheritances for different age and wealth groups.

While more than 60% of the lowest-wealth households that have received inheritances report that money was the most important type of inheritance received, the corresponding amount for the highest wealth group is only 13%.

The share of households reporting real estate or companies as the most important type of inheritance received increases with wealth.

What amount have households inherited?

Source: HFCS Austria 2017, OeNB.

This graph shows the median household inheritance value for different wealth groups.

The inheritance value is calculated in two ways: (1) as a simple value, just as indicated by the household and (2) as a present value, adjusting the values of the inheritances to make them comparable over time.

The mean household inheritance (this is not shown in the graph) amounts to about 140.000 euro (present value: 250.000 euro) and the median lies around 50.000 euro (present value: 88.000 euro).

The median inheritance value is increasing with wealth. While the lowest-wealth households have a median inheritance present value of about 16.000 euro, the corresponding amount for the top 1% wealth group is more than 1 million euro.

What kind of intergenerational transfer: gift or inheritance?

Source: HFCS Austria 2017, OeNB.

The graphs show the share of households whose most valuable intergenerational transfer was a gift (versus an inheritance) for different age and wealth groups.

Overall, the most valuable intergenerational transfer that a household receives is more often an inheritance than a gift.

One can see that gifts are more common among younger households.

From whom have households received inheritances?

Source: HFCS Austria 2017, OeNB.

This bar chart shows the giver of the most valuable inheritance received among households with inheritances.

Among the households that have received some inheritance, 42% of them have received it from the father, 24% from the mother, and 16% either from paternal or maternal grandparents.