Older Australians & Americans Have Quite a Bit in Common

When it comes to retirement many older Australians are conflicted.

Four in five Australians 65 and older think their children face more challenging times than they did at the same age. Consequently, three-quarters of this group believe that passing on their wealth to the next generation is important, according to research from the Australian AMP bank.

However, when it comes to helping their kids seven in ten surveyed were reluctant to do so risking compromising their retirement standard of living.

“You have this bipolar situation where while they do believe they’re struggling and they do want to help them, they’re not comfortable to do so at the expense of their lifestyles”, said AMP’s Director of Retirement Ben Hillier.

The survey found most older Australians (much like Americans), have a strong desire to remain in their home. The rub is how can they have their cake and eat it too? For homeowners with substantial equity, the answer may be a reverse mortgage. The funds released from the loan would allow them to help their children without negatively impacting their quality of life. 

Older parents used to exclaim, “Kids these days!” believing their children had it easier than they did. However persistent inflation, crippling student debt, and exorbitant housing prices are changing that perception. This economic pain extends beyond Millennials- Gen X’rs in their 50s increasingly need their aging parents’ assistance as well. 

In conclusion, more older homeowners are unwilling to give up their retirement dreams to help their kids. Yet, their largest asset may help them retain their quality of life in retirement and financially assist their children. 

I some cases you can have your cake an eat it too.

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