Australians plan to leave more inheritance to their heirs
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Version 0 of 1. Australian retirees plan to leave more inheritance to their heirs than any other nationality, but those still working aren’t expecting it, a report by HSBC has revealed. The “life after work” survey of 16,000 people in 15 countries also found that about three in four semi-retirees wish they had worked full-time for longer, and 12% of working age people expect they will never be able to afford full retirement. The survey questioned people in Australia, the US, UK, Singapore, Taiwan, Hong Kong, Canada, France, China, Brazil, UAE, Mexico, Malaysia, India and Egypt. The vast majority of retirees in these countries – 69% – expect to leave a financial inheritance to their children, and of these people almost a third say they will definitely do so. The median amount they expect to leave for the kids is US$148,205 globally, but retired Australians surveyed said they expected to bequeath a median of US$501,909 each. It may come as a surprise to their children. The survey also asked people who are not yet fully retired how much they expected to inherit and the median response was a much lower $131,801. But this amount was still higher than any other country surveyed. Graham Heunis, head of retail banking and wealth management for HSBC in Australia, says the unusually high amount suggested by Australian retirees is down to the nation’s 22-years of economic prosperity. “Over the past decade Australian household wealth has grown 7.6% per year, making us one of the richest nations per capita globally, allowing retirees to provide their children a significant financial legacy,” he said. Not that it will necessarily have a huge effect. Only 36% of non-retirees who had received an inheritance told the survey that it made saving for their own retirement any easier and 14% said it actually made it more difficult. Globally, 25% of survey respondents said they received a significant financial loan or gift from their parents, with the highest rate of financial gift recipients in India with 53%. The report said 21% of fully retired Australian respondents had received a financial gift and 5% had been given a loan by their parents, both at a median value of US$26,590. “Such gifts or loans from family were given for a wide range of uses, including major life events such as getting married (25%), children’s education fees (24%), major purchases (23%), or help with housing costs (22%),” said the report. The survey also found 43% of Australian retirees’ income is funded by state pensions and benefits. It was slightly above the 37% global average, but well behind the world leader France, where state benefits and pensions funded 83% of retirement income. Our editors' picks for the day's top news and commentary delivered to your inbox each morning. |