What are you leaving behind? 173



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Superannuation fund REST has revealed that our children and grandchildren are hoping for a windfall in retirement. No, they don’t have their bets on a lottery win – they are hoping you’ll leave them money so they can enjoy their senior years.

According to REST’s data, 33 per cent of young men and 27 per cent of women are assuming they’ll have an inheritance large enough to partially or fully fund their retirement after they leave the workforce.

This is extremely worrying that our family are convinced that our hard-earned money will be theirs in the future. What happened? Are our children expecting too much or do they have a right to think they deserve a cut of our life savings? And should we feel bad if we don’t have any money left over for them?

The presumption you will fund another person’s retirement is risky in itself because as our children stay at home longer, we often don’t have enough ourselves. REST’s CEO Damian Hill said, “Home ownership for Baby Boomers is starting to diminish and more of them are entering retirement in debt so when they get to retirement they are having to use their super for debt”, meaning there’ll be little left over for the kids. But is that your problem or theirs?

Statistics are showing that Australians need to plan their retirement well in advance now that we are living much longer after we do retire. It isn’t a case of retiring when we are 60 and living to 75 – now we can live to 85, 90 and beyond. It seems that our children and grandchildren aren’t understanding the concept of super and why they’ll need it. Even putting away another $10 a week in their 30s could end up with $12,000+ in their super account by the time they’re 50.

Those who want a comfortable retirement will need $510,000 (for a couple) or $430,000 (for a single) saved, which is a lot for a parent to supply.

The risky strategy is obviously not recommended by just about everyone, but that doesn’t mean it isn’t happening.

So will you be sitting down with your children to work out what their retirement strategy is? Or will you simply leave them money? Tell us below.

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  1. My parents both passed away this year and yes they left us some money but we continually argued over the years about it…we kept saying to them that they should spend their money and make sure they were comfortable in their retirement and didn’t go without anything…my continual cry to them was ‘Where is it written that you have to leave us anything ? ‘ My girls know that they won’t be getting much from us….we just don’t have a lot to leave for them and anyway they were brought up the right way…not to be greedy and to work for what they want.

  2. I’m not sure what cash we will leave but our kids will have a house, boat , vehicle and caravan so I think that’s enough.

  3. Like Ellen, I doubt if there’ll be any left for our kids. I worry about how we’re going to manage, on our meagre super funds, let alone how the kids are going to manage.

  4. I’m not sure we will have anything left to give them apart from our home which will soon be needing repairs.But it’s hard on a pension to fund these

  5. My husband passed away in 1987 aged 39yrs. I was morgage free and had a small amount of money. I remember my daughter asking me how much would she get when I died!!!!! Well after many years I no longer own my home and have no money so to speak. Times have been hard, plus I’m raising two teenage grandchildren.

    2 REPLY
    • Robin I’m the same you having custody of 2 grandchildren so that’s were our money goes bringing them up but any surplus we will spend kids inheritance after all we are the ones who earned it not them they just expect toooooo much these days

    • Good on you guys …..it must be difficult …my wife and I help out one of our daughters with her two young kids and it’s hard work esp when you are worn out from raising your own and then having to deal with them as children even when they are adults ….

  6. they can get off their arse and work and save just like i did

    2 REPLY
    • Robert, I’ll bet anything that you sound just like your old man.
      The more things change, the ………………….

    • my FATHER passed away when I was 11, I loved him dearly or what i can remember of him. Mum battled to bring us 6 kids up in a loving and fair environement. we have all become responsible adults and it wasn’t due to hand outs from anybody thanks peter

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