Being a member of Generation Y, this story labelling baby boomer parents ‘stingy’ caught my eye this week.
Its case was based on a new report from National Seniors Australia and Challenger that found only a quarter (23 per cent) of older Aussies now say leaving money behind for their children is their top priority.
Their research – which surveyed over 5,800 50-plus Australians – found just three per cent planned to keep their savings for the next generation.
But is it a fair label?
The report also showed that most retirees had already given their children money for a house deposit or provided rent-free accommodation – a financial helping hand many of my friends have benefited from in the past.
The end of the ‘Bank of Mum and Dad’?
Another ING study released this week reveals most retirees (60 per cent) only have enough savings to last 14 years beyond retirement, outliving their savings by an average of five years.
The fact is most of us underestimate how long we will live – and we will need every cent to fund our later years.
As we reported here last week, consumers will have to start paying more if we want our aged care system to be adequately funded.
So I’ll consider myself lucky if my parents leave me some cash – and I won’t call them stingy if they don’t.