In Austria, net wealth is very unevenly distributed among the population – also in comparison with other countries. This is the conclusion of a study by the National Bank on asset distribution. However, a direct comparison is difficult because of institutional differences, the study authors warn.
For example, Austria has a good public pension system, which leads to a different saving behavior than in countries where this is not the case. In addition, in Austria only about half of households (47.6 percent) are homeowners. “Austria and Germany are tenant companies,” said economist Martin Schurz of the National Bank on Wednesday at the presentation of the study.
Homeowners have more wealth
Almost all homeowners are in the upper half of the net wealth distribution, while the lower half of the net wealth distribution mainly consists of households that rent out their homes. Only Germany has a higher share of tenants in the euro area.
As in all euro countries, the distribution of net wealth in Austria is much more unequal than the distribution of income. Direct business ownership and rental income from real estate are concentrated in the top ten net wealth distribution.
Really poor and super rich not included
However, the study authors stress that the power concentration analysis cannot be done with the HFCS data alone. This is one of the reasons why the ECB will soon be issuing distribution accounts. Moreover, you cannot conduct a poverty or wealth study with this data, emphasizes Schurz. No homeless people were interviewed, “we have an underreporting of really poor people”. The maximum value for net assets is also twelve million euros, “then you can imagine how much is missing at the top”.
It is striking that especially rich, but also especially poor people place themselves closer to the middle of the wealth distribution. “People who have millions don’t think they’re in the top five percent of households in Austria.”
Low debt risk
Few households in Austria have debts (29.9 percent). Only 13.9 percent have secured debt, while about 17.4 percent have unsecured debt. Secured debt is mainly held by households in the top half of the net wealth distribution. Therefore, the potential risks to financial stability from household debt are relatively small in Austria compared to other euro area countries, the study concludes.
Austrian households have very low-risk financial portfolio profiles. Few households hold assets that are generally considered risky. Only 12.3 percent of households own mutual funds, only 6.1 percent own stocks and only 2.5 percent own bonds. When households hold risky assets, they make up about 40 percent of their financial portfolio.
Source: Krone
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