The report, which surveyed 2,250 individuals, reveals that nearly half of Australians aged 18–29 expect to receive an inheritance, with the average amount anticipated surpassing $525,000. Interestingly, this expectation is approximately double what those aged 50–64 anticipate. This generational dissonance may suggest entitlement, yet a closer look reveals economic challenges shaping these hopes.
Kelly Power, CEO of CFS Superannuation, explains that younger Australians’ expectations of inheritance derive from mounting living costs, stagnant wages, and increasing housing pressures. Meanwhile, older generations are faced with retirement planning challenges, aiming to balance financial support for their children while securing their financial future.
The study further identifies a lack of financial planning among older Australians, contributing to uncertain inheritance prospects. While many desire to leave assets behind, only 38% possess a will. Even those with wills often reserve certain assets such as family homes, vehicles, and superannuation disbursements for their heirs, leaving investment portfolios and other properties as retirement sustenance.
Craig Day, head of technical services at CFS, notes that extended life expectancies are prompting retirees to prioritise financial security over generational wealth transfer. With the potential for decades-long retirements, sustaining a comfortable lifestyle may take precedence over inheritance planning. Day highlights the importance of managing expectations, suggesting that young Australians may overestimate their share of future inheritances amid shifting parental priorities.
The role of financial advice becomes apparent in aligning familial expectations. By facilitating early discussions about future plans and goals, financial advisors can help families navigate this complex landscape. Day emphasises that open dialogues about intentions and needs are crucial for making informed and aligned decisions, ensuring clarity is passed alongside wealth.
