How long will it take you to become a millionaire? [calculator]

Are you rolling in pineapples in a silk robe across your zebra-skin rug?

Or sitting on your gold-plated throne while watching the game on an LCD screen mounted above your gas fireplace in your ensuite that overlooks the harbour?

These could be the images of how people in other countries think we live, although many Australians might not feel so well off, following research compiled by one of Australia’s biggest comparison websites finder.com.au.

The Global Wealth Report from Credit Suisse showed Australia has 1.25 million US-dollar millionaires, including real estate and financial holdings.

To put that into perspective, this is 7.35 percent of all adults.

The median Australian adult was worth more than US$225,000 (A$256,211) in June 2012, the highest in the world for the fifth consecutive year, according to the report.

This was well ahead of the second wealthiest population on the list – Belgium on US$173,000 (A$195,258).

Michelle Hutchison, Money Expert at finder.com.au, said despite these surprising figures, other statistics show a bleaker situation for many Australians.

“Many Australians are growing richer and it’s great to see that we rank high compared to many other nations.

“For instance, the net wealth of the average Australian adult has more than quadrupled since 2000 – from US$103,151 (A$116,305) to US$431,000 (A$485,947).”

“That makes Australians the second-richest population on the list, behind the Swiss at US$581,000.”

“Only 6 percent of Australians have wealth below US$10,000 (A$11,284), compared with 29 percent of people in the United States and 70 percent for the world as a whole, according to the report.

“However there are a lot of Australians who would struggle to reach the ‘millionaire’s club’, with the wealthiest 20 percent of households in Australia accounting for almost two-thirds (61 percent) of total household net worth – an average net worth of A$2.2 million per household.

“The average Australian adult earns $1,516.90 per week and saves just 9.4 percent, which is worth an average of $142.60 in savings per week.”

Australians have a record $675.1 billion of personal savings in banks, worth an average of $37,544 per adult.

According to the following finder.com.au Millionaire Calculator, which estimates the time it will take to hit $1 million in savings based on savings patterns and interest earned, a 30 year-old with the average savings of $37,544, who saves about $142.60 per week, and the average savings interest rate of about 3 percent, it would take them over 97 years to become a millionaire.

Source: finder.com.au, estimate of savings over time, based on regular after tax savings, it uses a constant interest rate and does not take into account inflation, debts and other investments you may have.

Why not use this calculator to find out how long it will take before you hit the big time?

You might be surprised by the difference it can make to add a little extra into your savings or finding a better savings account.

Not surprisingly, baby boomers are the wealthiest of the nation

The age group holding the highest average net worth of $1.1 million in 2011-12 was households aged between 55 and 59 years.

Many of these people are nearing the end of their time in the labour force or have recently retired.

Those who live in a capital city are likely to save 21 percent more than those living outside capital cities.

from Property UpdateProperty Update http://propertyupdate.com.au/how-long-will-it-take-you-to-become-a-millionaire/