Real Estate
Times are tough, and it seems millions of Aussies are pinning their financial hopes on something a little morbid: an inheritance.
New Finder research reveals around 8.8 million people – around 41 per cent of Australia’s total population – are slated for a bequest, with one in ten actually dependent on that inheritance to achieve big-ticket dreams like buying a home or retiring.
The data, based on survey of 1017 respondents, also reveals that almost 1 in 5 (19 per cent) admit the anticipated fortune will significantly improve their financial situation but aren’t solely dependent on it.
A further 12 per cent say the legacy they are set to receive won’t have a major impact on their financial plans.
Meanwhile, half of Australians (49 per cent) say their family is not in a position to leave an inheritance.
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Source: Finder
Sarah Megginson, personal finance expert at Finder, said family wealth is becoming a crucial financial lifeline as Australians grapple with the cost of living.
“Millions are quietly depending on family support to achieve their financial goals, whether it’s purchasing a home, sending their kids to private school or settling debts,” she says.
“With sky-high living costs and loads of wealth being held by older generations in property and super, it’s understandable that some Australians are banking on an inheritance. But, don’t put all your eggs in that basket.
“Many people are surprised after a loved one passes away to discover their financial situation is not what they expected, or that assets have been left to other people.”
Of those who expect to receive an inheritance, 15 per cent say they are due to inherit it within the next 1 to 5 years.
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Millions of Australians are relying on an inheritance for financial stability.
Nearly 1 in 4 (23 per cent) expect to receive an inheritance within the next 6 to 10 years, while 26 per cent believe it’s at least a decade away.
More than 1 in 3 (36 per cent) remain uncertain about when, if ever, they’ll receive their share.
Megginson said counting on money you haven’t yet received can lead to delaying important financial decisions and foster a false sense of security.
“It’s important to remember that not everyone has the luxury of a family windfall,” she says.
“Relying solely on this potential future support can be a gamble, so make sure you’re proactively building your own financial security at the same time.
“A sudden influx of money, even a substantial one, can quickly disappear without a clear financial strategy in place.”
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