Aussies not prepared for largest transfer of wealth in history

Aussies not prepared for largest transfer of wealth in history

Australia is approaching the largest intergenerational wealth transfer in history, yet new research shows most of us are totally unprepared with 76% revealing they don’t have a will.

And despite the fact that more than half of Australians are expecting to inherit money, 53% of parents have not discussed their will and legacy with their children.

Perpetual recently surveyed 3,000 Australians to find out their attitudes towards wealth, inheritance and their families.

The 2019 edition of the “What do you care about” research uncovered Australians hoped their children would use their inheritance wisely (60%) and invest in their future (58%).

According to Andrew Baker, Perpetual Private’s General Manager of Private Clients, rising cost of living, slow wage growth and a volatile property market was painting a very different picture of wealth for Australians today than it did 30 years ago.

“Baby boomers were fortunate enough to experience a period of supercharged wealth accumulation which has resulted in a stark contrast in levels of wealth between their generation compared to millennials and also a contrast in attitudes towards money.

“When it comes to wealth, what’s important to you may not necessarily be important to your children but discussing your wishes openly will minimise any possible surprises or misunderstandings when it comes time to distribute inheritance.”

The report estimated 70% of families would lose their wealth by the second generation and 90% would lose it by the third.

Mr Baker urged families to normalise discussions around money and the future sooner rather than later in order to preserve wealth across generations.

“It is important the stigmas around discussing wills and inheritance are broken down so that all parties can be prepared and can have a plan in place.”

The Perpetual survey follows recent research by Franklin Templeton (November 2019) which revealed that only 24% of Australian retirees had consulted a financial adviser and only 54% had coordinated their retirement planning with their partner.

The survey of 2,000 Australians also revealed that 81% of retirees had never written a retirement income plan and only 43% said they had a strategy to generate income for retirement that could last 30 years or more.

Smooth Retirement are retirement income specialists. We are licensed equity release planners and brokers offering accessible, affordable retirement income solutions and long-term plans that take into account your inheritance and aged care needs.

Talk to us today 1300 510 015. Our consultation service is free.

Smooth Retirement Pty Ltd is an independent service providing expert guidance in equity release and retirement income planning Australia-wide. ABN: 46 619 010 445; AFSL 510015; Australian Credit Licence: 510015; smoothretirement.com.au; info@smoothretirement.com.au; 1300 510 015.

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