If you think your Baby Boomer parents or grandparents are going to leave you sitting pretty when they depart this world, you had better think again.
72% of Australians aged over 50 say they would rather spend their money in order to enjoy their retirement than leave it for their kids, according to new research commissioned by Apia, the leading Australian insurer for over 50s.
Apia’s ‘Life Begins at 50’ report is based on a study of over 2000 Australians aged over 50 and examines a wide range of attitudes and intentions, including what they intend to do with the wealth they have built up over their lifetime.
With the typical Aussie household being worth $720,000[1], including the value of properties, investments, superannuation and other assets, that is a potentially large black hole for many banking on the bonus of inherited wealth.
“Baby Boomers have an undeserved reputation of being a selfish generation, always putting themselves first. They, however, are the same generation that have worked hard for their children, put up with their kids staying at home longer than they did, and probably helped them out with buying their first home,” commented Grant Taylor, Executive Manager of Apia.
“I’m not sure it’s surprising that they are saying to themselves they want to enjoy the fruits of their hard work and spend it all before they go,” he added.
Experts, though, warn that before the kids and grandkids of Baby Boomers start strategising about how to convince their parents to pinch their pennies rather than spend it all, it is worth keeping in mind that lavish retirements may have to remain a pipedream for the many Baby Boomers facing the prospect of an under funded retirement.
Eric Moses, Executive Manager of Advice at Apia added, “From a financial management perspective, it is likely not a case of not wanting to leave a large inheritance, but not being able to. Despite being the generation that established Australia’s superannuation regime, Baby Boomers, ironically, are not able to take full advantage of it.
“Australia has a widely recognised world leading retirement model. However, baby boomers are ultimately underfunded and the vast majority will be reliant on the age pension to make ends meet, resulting in baby boomers forgoing their preferred lifestyle in retirement.”
You can download a copy of Life Begins at 50: The Big Issues for free by clicking here
[1] Australian Bureau of Statistics, Household Wealth and Distribution, 2009-10
For further information and to arrange interviews, please contact:
David Skapinker
Senior Communications Advisor, Apia
T: 02 8121 1404
M: 0467 801 922
E: David.skapinker@suncorp.com.au
Apia is a specialist insurance provider for people aged over 50. Providing a wide range of home and contents, car, caravan, motor home, boat and life insurance solutions tailored to the over 50s life stage, Apia has a network of 28 branches across Australia serving almost 700,000 policy holders. For more information on Apia visit www.apia.com.au
Australian Pensioners Insurance Pty Limited ABN 14 099 650 996 (Apia) acts as agent and authorised representative of Australian Alliance Insurance Company Limited ABN 11 006 471 709, the issuer of the general insurance products.
