Almost three-quarters of Australians are willing to sacrifice their own inheritance for their parents and grandparents to have comfortable retirements, according to a report by CompliSpace.
The study also revealed that almost half of Australians intend to leave an inheritance. CompliSpace CEO David Griffiths said scrutiny on older Australians who can afford to pay for their own care would intensify. Australia spends about $30 billion per annum on aged care, which is only half of what comparable countries do.
Two-thirds of funding is provided by taxpayers, and this will place an increasing burden on the Australian government as baby boomers enter aged care.
The report highlights the fact that there is a significant funding shortfall for aged care in Australia.
The country currently spends about $30 billion per annum on aged care, which is only half of what comparable countries do.
The funding shortfall has led to an increasing burden on the Australian government budget, especially with the Baby Boomer generation about to enter aged care in large numbers for the first time.
To address the funding shortfall, CompliSpace CEO David Griffiths suggests enabling greater co-contribution models for those who can afford it, while funding 100 per cent of care for those who cannot. The report finds that Australians are willing to sacrifice their inheritance so their parents and grandparents can enjoy the retirement they deserve.
Almost three-quarters (73 per cent) of Australians are willing to forego an inheritance so their older family members can have the retirement they deserve.
The report also suggests that Australians expect to receive an inheritance, with half of Australians (51 per cent) expecting to receive one.
The value of expected inheritances ranges widely, from under $5,000 to over $1M.
The largest cohort (27 per cent) expects to receive between $50,000-$250,000, while five per cent expect an inheritance between $1 million-$2 million.
Despite supporting their elders’ choice to spend everything on their own care, almost half of Australians (47 per cent) are not willing to do the same for themselves, with 47 per cent saying that they intend to leave an inheritance.
More than a quarter (38 per cent) of Australians agree that older people should sell their home if needed to fund their aged care.
The report also provides state-by-state comparison insights, with New South Wales residents being the “windfall winners” – NSW families bequeath the most wealth.
Nineteen per cent of NSW respondents reported receiving an inheritance of over $500,000, compared to the national average of 14 per cent.
In conclusion, the report suggests that Australia is experiencing an aged care funding crisis, and the pressure on the system is likely to grow as the country’s population ages rapidly.
The report highlights the need for greater co-contribution models for those who can afford it, while funding 100 per cent of care for those who cannot.
The findings of the report suggest that Australians are willing to sacrifice their inheritance to provide their parents and grandparents with the care they need and deserve.
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