Yes, plus any other financial assets (deposits, shares, etc., held outside your pension), less any other debt (credit card, motor loans, etc.)So would nett wealth include one’s private residence less mortgage outstanding and one’s accumulated private pension ?
The CSO does this in the data release, kind of. Unsurprisingly, older people hold the most wealth and only 13% of adults under 35 have net wealth above the median for all adults. But this is the same the world over.It's a pity, IMO, that the data isn't broken down into age cohorts. I suspect the proportion of households headed by somebody in their 60s with net wealth of €1m+ is actually quite significant, whereas I suspect very few households headed by somebody in their 30s have net wealth of €1m+.
DB schemes (and not just public sector ones) are excluded and also life insurance. The issue is that this is a survey-based, self-report method so you can only ask people obvious things like the value of their pension fund, bank deposits, farmland, etc. Most people have a very hazy idea of their DB benefits never mind being able to put a capital value on them. You get the same issue with wage earnings: Revenue data, the CSO household surveys, and CSO surveys of employers all tell you different things about what average earnings are.Another weakness of the data, IMO, is that it excludes claims on the State in calculating net wealth. For example, the average Garda would have accrued pension entitlements with an actuarial value well north of €1m by 55 but that doesn't show up in data.
ThanksYes, plus any other financial assets (deposits, shares, etc., held outside your pension), less any other debt (credit card, motor loans, etc.)
The problem with most analyses of wealth in Ireland is that you're not wealthy at all if you need to count in that, the paper value of your home. A large number of nominally wealthy people are only a number of months' payslips away from reliance on social welfare of one kind of another.It does remind me of the Celtic Tiger where a lot of people (especially in Dublin) found themselves asset rich but perhaps cash poor on the basis of inflated property prices.
how did you calculate that?The Evolution of Irish Household Wealth | Central Bank of Ireland
This behind the data publication focuses on the evolution of Irish household wealth inequality since 2013www.centralbank.ie
Another interesting nugget from the analysis is that the % of total household net wealth owned by the top 10% of Irish households has actually fallen from 60% in 2013 to 54% in 2022.
It's a pity, IMO, that the data isn't broken down into age cohorts. I suspect the proportion of households headed by somebody in their 60s with net wealth of €1m+ is actually quite significant, whereas I suspect very few households headed by somebody in their 30s have net wealth of €1m+.
Another weakness of the data, IMO, is that it excludes claims on the State in calculating net wealth. For example, the average Garda would have accrued pension entitlements with an actuarial value well north of €1m by 55 but that doesn't show up in data.
The analysis is presented by the Central Bank - they’re not my figures.how did you calculate that?
No, unless they're on a perpetual interest only mortgage.When most people say they own their own home are they wrong? Would it not be better to say they're leasing it from a financial institution.
And if you added in contributory state pensions you'd add a few more hundred billion in wealth, and probably reduce the Gini coefficient a bit as well.I would guess that if you included the actuarial value of a DB pension as an asset, you would at least double (maybe even triple) the % of households with €1m+ net wealth.
If the garda is single and dies, their pension pot per say dies with them. It doesn't go to their estate. And so it's not an asset in the calculations.The Evolution of Irish Household Wealth | Central Bank of Ireland
This behind the data publication focuses on the evolution of Irish household wealth inequality since 2013www.centralbank.ie
Another interesting nugget from the analysis is that the % of total household net wealth owned by the top 10% of Irish households has actually fallen from 60% in 2013 to 54% in 2022.
It's a pity, IMO, that the data isn't broken down into age cohorts. I suspect the proportion of households headed by somebody in their 60s with net wealth of €1m+ is actually quite significant, whereas I suspect very few households headed by somebody in their 30s have net wealth of €1m+.
Another weakness of the data, IMO, is that it excludes claims on the State in calculating net wealth. For example, the average Garda would have accrued pension entitlements with an actuarial value well north of €1m by 55 but that doesn't show up in data.
But it's not not as asset. If a Garda retires at 55 on a salary of €90k they'll get a pension of lump sum payment of €135k plus a pension of €45k a year. If they live to 85 that's a total pay out of €1.485 million. How can the capital allocated to those payments that not be counted as wealth?If the garda is single and dies, their pension pot per say dies with them. It doesn't go to their estate. And so it's not an asset in the calculations.
Around 25% of households have a mortgage on their main residence.When most people say they own their own home are they wrong? Would it not be better to say they're leasing it from a financial institution.
This is true. PS pensions are a wealth of sorts, but you can't transfer or securitise it. It's contingent on the state's ability to pay it, and can't be transferred except if you die and the spouse's pension is paid.If the garda is single and dies, their pension pot per say dies with them. It doesn't go to their estate. And so it's not an asset in the calculations.
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?