That’s according to research from AMP released last week, which found 80 per cent of people aged 65 and over think “their children face harder or similar financial challenges now compared with them at the same age” amid the housing crisis and surging cost of living.
However, 70 per cent said they would be unwilling to adjust their lifestyles to help their children tackle the challenges.
At the same time, three-quarters of over 65s said it was important to pass on wealth to their children.
“As housing unaffordability and cost-of-living pressures rise, Australia’s burgeoning retiree population faces a growing dilemma – how do they help their kids financially, while also fully enjoying their retirement years?” AMP director of retirement Ben Hillier said.
“Unlocking different options for financial support, beyond accommodation, starts with older Australians having greater comfort with their own finances.
“We know, for example, far too many retirees are unnecessarily fearful their savings won’t last their lifetime.”
The research found the most common form of support retirees were willing to offer was in the form of accommodation – allowing their children to live at home for longer.
Treasury Secretary Steven Kennedy said last week that young people have not been afforded the same access to the housing market as older generations.
“The intergenerational piece you’re talking about, I think, is more aptly looked at more carefully to the structure of the housing market, where young people are not getting the same opportunities that older people,” Kennedy said during a Senate estimates hearing.
Australians aged between 25 and 39 in 1991 were three times more likely than someone the same age in 2021 to own their home outright, according to the last Census, and that was before rents and house prices surged following the pandemic.
While the nation is desperate for greater housing stock to help combat that crisis, AMP’s research found 80 per cent of over 65s have too great an attachment to their family homes to consider downsizing.
“Given retirees’ attachment to the family home, it’s also clear that as an industry, we need to explore new ways to help retirees unlock capital from their home, without the need to downsize or compromise their long-term wellbeing,” Hillier said.