Money

One in three kids counting on inheritance from parents

Jun 11, 2018

The research found people are increasingly relying on the financial help of others. Source: Shutterstock

Shocking new research has revealed that people are increasingly looking to others to fund their future, with one in three people admitting their financial stability is dependent upon receiving an inheritance.

The recent study, which questioned 1,000 people on their financial independence, found that a large number of people believe they do not have sufficient savings of their own, instead pegging their hopes on a bequeathment of some kind.

Most astonishingly, 20 per cent of Baby Boomers confessed that they are hoping to be left a lump sum by a loved one, despite the youngest in the generation being just years away from retirement. While 36 per cent of Gen Xers (1865-1980) and 32 per cent of Millenials (1981-1996) are also relying on an inheritance to boost their finances.

However, the findings also showed that Gen Z (aged 18-22) are the worst generation when it comes to this type of attitude, with a whopping 63 percent confessing to relying on a family bestowal, despite the majority of this age group insisting they are independent when it comes to making financial decisions.

The research was carried out by American retail banking company Merrill Edge. Head of Merrill Edge, Aron Levine, said: “We’ve never seen such a strong reliance on receiving an inheritance. With shifting priorities and growing lifespans, Americans are finding new ways to ensure their financial stability and are increasingly looking to others.

“While it’s great to see investors thinking ahead, the key to financial freedom is outlining and following an action plan for short- and long-term goals beyond an inheritance — which may or may not ever come.”

The research also revealed that the youngest generation, Gen Z, were most likely to rely on help from other people when it comes to money, with 32 percent saying they relied on the bank of mum and dad, 17 per cent turning to their grandparents and 17 per cent asking friends to bail them out.

It is also becoming increasingly common for people to ask for input when making major financial decisions too, with 36 per cent of those asked saying they would ask for the opinions of others before investing money and 22 per ent when it comes to the topic of retirement.

It was recently revealed that ‘inheritance impatience’ is on the rise, with COTA Australia reporting an increasing number of cases of adult children taking advantage of their parents to try and access inheritance money prematurely.