Parents edging retirement are finding their adult children a financial burden and expect to still be carrying debts once they stop work, the Herald Sun reports.
A new whitepaper commissioned by super fund REST Industry Super has revealed Australians over 50 who are still working say the cost of paying for their adult childrens’ education and helping them stump up a house deposit is adding pressure to their budgets.
REST chief executive officer Damien Hill said the burden on the older generations to support their children in their adult years – or otherwise known as intergenerational dependency – was leaving the finances of both children and parents squeezed and costing them collectively $507 billion throughout their lives.
The report revealed nearly half of older working Australian expect to retire with debts owing.
“We are concerned older Australians could potentially have significant financial stress in retirement because of the debts they are carrying,’’ Mr Hill said.
“A quarter of older working Australians are retiring with credit card debt and 10 per cent with unpaid bills and it’s really those (21 per cent) who are retiring with a mortgage that is causing us concern.”
Mr Hill said Australians needed to focus on clearing debts before they stop working.
The research also revealed 72 per cent of intergenerational assistance is provided to adult children over 18.
The most common expenses parents help their adult children with include education ($109 billion), everyday expenses ($93.1 billion) and home deposits ($68.5 billion.)