In contrast, Millennials and Gen Z have lower average wealth stored in housing with $750,000 and $69,000 respectively. This disparity highlights the challenges younger generations face in entering the housing market.

“Baby Boomers have historically been the largest holders of housing assets, but as this cohort ages into retirement they are beginning to sell down their property portfolios,” said Terry Rawnsley, KPMG urban economist.

The inheritance of property is becoming more common among the children of older Baby Boomers.

"While the starter’s gun has been fired on the great wealth transfer, our findings still demonstrate a clear disparity in housing wealth between older and younger generations,” Rawnsley added.

In terms of cash and deposits, Baby Boomers lead the way with $242,000 followed by Gen X with $176,000, while Millennials and Generation Z hold $104,000 and $26,000, respectively.

"Baby Boomers' are gravitating towards liquidity and higher cash holdings which reflect their inclination towards safer investments," Rawnsley said.

When it comes to shares, Gen X has the highest ownership, valued at $256,000. Baby Boomers hold $206,000 in shares, once again highlighting Boomer desire for less risky assets.

Meanwhile, Millennials and Gen Z have considerably lower amounts, with $51,000 and $7,000 respectively, suggesting less opportunity for share market investment among younger cohorts.

"These lower levels of share ownership among younger generations indicate a cautious approach towards equity markets, possibly due to financial pressures and less cash to invest," Rawnsley commented.

Other assets, which are mostly superannuation and business assets, show Baby Boomers and Gen X with comparable holdings, $641,000 and $586,000, respectively, indicating broad diversification in asset classes.

Millennials and Gen Z hold $260,000 and $43,000 in other assets, reflecting a more limited time to build up a business and add to their superannuation balances.

“There is some good news for younger generations in the superannuation asset class as they are coming off a far higher base than their parents. This means the wealth they will eventually accumulate from super will be far higher than older generations,” Rawnsley said.

In terms of average net worth, Gen Z has approximately $96,000, while Millennials hold an average of $757,000. Generation X has a higher average net worth of about $1.88 million, and Baby Boomers lead with an average net worth of $2.31 million.

"These net worth figures highlight the wealth accumulation lifecycle, where older generations have had more time to build assets and pay down debt,” Rawnsley said.

“We should note that these are average values for the average age of people within the various cohorts, so there would be plenty of differences from these averages for people in each cohort.”