Australians retirees are setting aside more money for their families to inherit than people in any other country, thanks to decades of economic prosperity and more generous inheritance law.
A report from HSBC on Friday put the average Australian inheritance fund at $499,000 – four times the global average – of which individual beneficiaries received a median of $169,000.
From the report:
While more than two thirds (69%) of Australian retirees surveyed planned to leave an inheritance, only 50% of working-aged people said they expected to receive an inheritance.
HSBC found that financial gifts, loans or inheritance had become increasingly important for young Australians who might otherwise struggle to meet high costs of higher education and home ownership.
According to the survey, conducted between July 2012 and April 2013, 22% of working-aged Australians had received a “significant financial gift” from their parents and 11% a significant loan.
The current generation of retirees was also somewhat less fortunate than their children, with only 21% receiving a gift and 5% a loan.
Almost one in five Australian retirees reported that they were “significantly funding” dependents in retirement, although that percentage could grow in the coming years, with 44% of working-aged people expecting to do so, or reporting that they were unsure.
HSBC reported that half of working Australians expected to partially finance their own retirement with a future inheritance, and 14% would rely largely on an inheritance.
There’s more in HSBC’s report.
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