$1m just not good enough

TIM MCINTYRE WHO wants to be a millionaire? No one any more, because as new research reveals, Australians don’t think it’s enough.

Instead, Aussies have settled on a magic number — $5.3 million in the bank, not counting property assets, is what the average person would need to “feel rich”.

The figure, seven times our average household wealth of $740,000 (which does include property), came about through a survey of 2005 adults across the five major states, carried out by financial comparison site Finder.com.au.

It confirmed that $1 million is not much money any more, according to Finder spokeswoman Bessie Hassan.

“To live a (stereotypical) millionaire lifestyle, $1 million is not even close these days,” Ms Hassan said. “You can be earning a six-figure income and still be ‘struggling’.”

While $1 million went a long way 20 years ago, inflation and soaring property prices have changed the way Australians think.

CoreLogic figures show median house prices in Sydney and Melbourne have risen 65 per cent and 34 per cent respectively since 2012.

“If you’re worth over $5 million, it’s safe to say you can stop worrying about money,” Ms Hassan said.

“The average person could live off the interest alone — a $5 million nest egg would earn interest of $150,000 a year.”

The research revealed men need an average $5.9 million to feel rich, compared to $4.8 million for women.

The survey also found that parents’ perceptions largely reflect their present situations. While parents with kids under 10 claimed just $3.7 million would make them rich, parents of teens believed $8.2 million to be nearer the desired mark.