David Koch says older Australians need to make sure they’re ok before passing on any wealth to their kids or grandkids. (Source: David Koch\/Facebook) <\/p>\n
We all want our kids to have a better life than the one we enjoyed. That\u2019s why housing affordability has become a real worry for aging parents.<\/p>\n
Nobody wants to see their children struggle. But I\u2019m a little concerned that guilt ridden Baby Boomer parents<\/a> could end up putting their retirement lifestyles at risk, by digging a little too deep<\/a>.<\/p>\n Billions of dollars will be passed down to younger generations in the years ahead<\/a>. Compare the Market\u2019s Household Budget Barometer<\/a> shows that around 76% of Australians aged 59+ have done some inheritance planning, such as creating a will.<\/p>\n More than half (62%) of those people expect to leave at least one property to their children \u2013 a further 14% hope to pass on two or more.<\/p>\n RELATED <\/strong><\/p>\n It\u2019s extremely generous, but personally I don’t think you owe your kids any sort of inheritance.<\/p>\n You owe your kids a good education, a stable family life and a good upbringing. You shouldn’t feel obliged to pass on money before you die – especially if it affects your retirement life.<\/p>\n Because here\u2019s the thing: in a lot of cases, Millennials and Gen Z and future generations are probably going to retire with way more money than you!<\/p>\n And it\u2019s all thanks to compulsory superannuation.<\/p>\n When we Baby Boomers started, it was set as a miserly 3%. Then it went to 4%, then 6%, but it took ages to get to the levels we now enjoy today.<\/p>\n Young people today are going to benefit from contribution rates now set at 12% their entire working life. If your kids have good jobs and keep working, they could retire with triple the amount you have.<\/p>\n So don’t compromise your retirement and your life just because your kids are putting pressure on you to help them build their own! You have got to let them work it out.<\/p>\n While this generation does face a bigger challenge getting into the property market, there have always been struggles.<\/p>\n I was envious of my parent\u2019s lifestyle when I bought my first home because it was a real slog with much higher interest rates.<\/p>\n At times we hardly left the house. We couldn\u2019t afford to eat out at restaurants when our repayments were so big.<\/p>\n Now the tables have turned, and my kids are envious of me! It is a bit of a cycle \u2013 and I reckon we need a little more faith in the process.<\/p>\n Around $4.9 trillion could be passed on from Baby Boomers to their children, grandchildren and charitable benefactors over the next decade according to research from CoreData.<\/p>\n","protected":false},"excerpt":{"rendered":"David Koch says older Australians need to make sure they’re ok before passing on any wealth to their…\n","protected":false},"author":2,"featured_media":184844,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[177],"tags":[41595,79927,79,13872,13874,18,104106,74308,19,17,234,235],"class_list":{"0":"post-184843","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-personal-finance","8":"tag-baby-boomer","9":"tag-billions-of-dollars","10":"tag-business","11":"tag-compare-the-market","12":"tag-david-koch","13":"tag-eire","14":"tag-household-budget","15":"tag-housing-affordability","16":"tag-ie","17":"tag-ireland","18":"tag-personal-finance","19":"tag-personalfinance"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@ie\/115563669963711523","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/184843","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/comments?post=184843"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/184843\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media\/184844"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media?parent=184843"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/categories?post=184843"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/tags?post=184843"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}} We are heading into the greatest intergenerational wealth transfer in Australian history.(Source: Getty) <\/p>\n