With the government likely to make tough decisions on superannuation in
next month's Budget, more Australians are worried they won't be able to pass on
today's lifestyles to their children.
A survey by the National Australia Bank's wealth arm MLC shows almost
two-thirds of Australian believe the next generation will never be able to buy
their own homes.
Around half of the two thousand people surveyed don't think they can
sustain their own standard of living in a decade's time and a fifth are relying
on a family inheritance to pay off their mortgage.
MLC chief executive Andrew Hagger says expectations that future
generations will do better than today's taxpayers is fast fading.
"We know that maintaining our lifestyle and financial security are
our top priorities for Australians. However, Australians are telling us they
are worried," Mr Hagger said.
"There has always been the expectation that future generations
will do better than us. Yet these findings paint a different picture. It's
concerning to see so many people worried about how their children will afford
their own homes and live a comfortable lifestyle."
The MLC survey shows:
* two-thirds of Australian parents don't believe their children won't
achieve the same lifestyles as them
* almost 1 in 5 Australians are relying on the family inheritance to
pay off their mortgage
* more than a third of Australians believe they will be relying on the
Australian government during retirement
MLC's general manager of corporate super Lara Bourguignon says the
research indicates the lifestyles of the baby boomer generation are no longer
sustainable.
"The cost of living and the mortgage absolutely rule our financial
lives," Ms Bouguignon told the ABC's AM program.
"Many worry that today's young people will struggle to build the
same kind of life that their parents generation has enjoyed."
Ms Bouguignon said that without structural change and lower
expectations, standards of living could slide over time.
"Twenty years of economic prosperity has been led by the mining
boom. Australians are aware the mining boom has tapered out and they're not yet
confident where that next wave of growth is coming from."
Ms Bouguignon says the federal government needs to confront hard
decisions in the May 3 budget and that the funding of retirement needs to be a
national priority.
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