It’s not their fault they worked hard, and have enjoyed massive asset appreciation, typically in the form of the family home.
Still, it can sting if you’re trying to save a home deposit, knowing it could take you twice as long as it took your parents or grandparents.
“Older Australians have worked hard their whole lives to build up their retirement nest egg. However, the growth in Boomers’ wealth has outpaced other generations, which has increased the wealth gap,” says AMP in a recent report on intergenerational wealth.
The good news is older Australians are keen to help the young’uns.
“But they’re not confident enough about their retirement income to downsize, preferring to wait and transfer wealth in the form of an inheritance when they pass away – 90% of all intergenerational wealth transfer occurs through death inheritance.”
So they’re finding other ways to support financially, before they kick the golden bucket so to speak.
Here are some ways survey respondents help their adult children financially:
- Provide accommodation 20%
- Pay bills 15%
- Curb their own lifestyle spending 12%
- Delay or avoid aged care 11%
- Avoid going on holidays 10%
- Share subscription services 9%
- Downsize or relocate 7%
- Help with mortgage payments 6%
- Sell investment properties 3%
- Sell the family car 3%
- Delay retirement 3%
Ready to leave the family nest? View our current listings for sale or check our listings for rent.
Ready to downsize? Talk to us about selling.
