A significant number of Australians are banking on inheritances for substantial financial aspirations, such as buying homes or retiring comfortably. However, experts caution that such expectations may foster a misleading sense of security. According to a Finder survey, approximately 8.8 million Australians anticipate receiving financial support from family, with 43% of men and 41% of women expecting an inheritance.
The survey highlights that due to the rising cost of living, about 10% of respondents feel dependent on these expected inheritances to realise their financial goals. Furthermore, nearly one in five Australians believe that an inheritance could greatly bolster their finances, though they do not rely on it entirely. Interestingly, while 12% expect to receive an inheritance, they acknowledge that it may not significantly alter their financial plans.
On the other hand, nearly 10% of participants do not foresee any inheritance due to family dynamics, including lack of close relatives or strained relationships. Moreover, half of the respondents indicated that their families are not in a financial position to leave anything behind. Finder’s personal finance expert, Sarah Megginson, notes that many Australians view inherited wealth as a crucial support system amid rising living costs.
Megginson warns against relying on such uncertain future payouts as it can delay essential financial decisions and create an illusion of security. She stresses that many families may not be able to provide an inheritance, urging individuals expecting one to invest in their financial education, covering areas like investing, tax implications, and budgeting skills. “A sudden windfall can be gone quickly without a comprehensive financial strategy,” she cautions.
In summary, while millions of Australians look forward to potential inheritances as a financial pillar, this reliance can be precarious. It is advisable to prepare for the future through prudent financial planning, rather than solely depending on uncertain family wealth.