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Millions of Australians are relying on an inheritance to achieve major financial goals such as purchasing a home or retiring, but experts are warning the expectation of a windfall is creating a “false sense of security”.
With the current cost of living, one in 10 respondents to the Finder survey said they were dependent on an inheritance to achieve their financial goals.
Almost one in five Australians said an inheritance would significantly improve their finances but they were not dependent on the money.
The survey also found that while 12 per cent of respondents expect to receive an inheritance, the financial boost would not have a major impact on their financial plans.
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Almost one in 10 respondents did not expect to get an inheritance due to family circumstances such as a lack of family or strained relationships.
Meanwhile, half of Australians said their family was not in a position to leave an inheritance.
Finder personal finance expert Sarah Megginson said the family money was increasingly viewed as a lifeline for many Australians navigating rising costs.
”With the cost of living sky-high, it’s not surprising that some Aussies are hinging their future financial security on an inheritance, but it’s a risky strategy,” Megginson said.
“Relying on money that hasn’t hit your bank account yet can delay important financial decisions and create a false sense of security.
“Not everyone can count on a family payout, nearly half of Aussies say their family won’t be in a position to leave anything behind.”
Megginson urged Australians who expect to receive an inheritance to use this time to educate themselves on topics such as investing, tax implications and budgeting.
“A sudden windfall can disappear fast without a solid financial plan in place,” Megginson said.
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