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While AMP’s research proves older Australians want to help their children in today’s challenging economic environment, it found four in five Australians over 65 are not interested in downsizing.
Experts believe that empty-nesters choosing to stay in their family homes stops young families from moving into bigger homes and means retirees don’t get windfalls to spend.
AMP director Ben Hillier said the reluctance to cut was rooted in poor policy settings.
“Basically any money you have tied up in the family home is exempt from the age pension eligibility rules,” Hillier said.
“As soon as you release that capital and put it into another vehicle like a superannuation fund or a bank, you start to be penalized in terms of the amount of age pension you’re entitled to.”
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The survey found that while putting their home on the market is not a priority for older Australians, they are determined to help their children in other ways.
One in five older Australians would be willing to house their family, while 15 per cent would pay their bills.
More than one in 10 would cut back on spending, including the holidays, but only seven percent would sell their home and use some of the money to help their family.
Experts hope the study will prompt some changes by state and federal leaders to encourage retirees to spend more of their wealth.
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