Baby Boomers think young people are doing it tough. Most don’t want to help out though, AMP survey shows

That’s according to an AMP survey published last week that found 80 percent of people aged 65 and over believe “their children face more difficult or similar financial challenges now than they did at the same age” amid of the housing crisis and the rising cost of living.

However, 70 percent said they would not be willing to adjust their lifestyle to help their children cope with the challenges.

At the same time, three-quarters of people over 65 say it is important to pass on wealth to their children.

“As housing unaffordability and cost-of-living pressures increase, Australia’s growing retiree population faces a growing dilemma – how to help their children financially while fully enjoying their retirement years?” Director of Retirement at AMP Ben Hillier said.

“Unlocking different financial support options beyond accommodation starts with older Australians being more comfortable with their own finances.

“We know, for example, that too many retirees are unnecessarily afraid that their savings will not last them a lifetime.”

The survey found that the most common form of support that retirees are willing to offer is in the form of accommodation – allowing their children to live at home for longer.

Treasury Secretary Stephen Kennedy said last week that young people have not been given the same access to the housing market as older generations.

“I think the intergenerational part that you’re talking about is more relevant to looking more closely at the structure of the housing market, where young people don’t get the same opportunities as older people,” Kennedy said during a Senate hearing. 

According to the latest census, Australians aged 25 to 39 in 1991 were three times more likely than someone of the same age in 2021 to own their home outright, and that was before rents and house prices jump after the pandemic.

Although the nation desperately needs more housing stock to help combat this crisis, AMP research found that 80 per cent of over-65s are too attached to their family homes to consider downsizing.

“Given retirees’ attachment to the family home, it’s also clear that as an industry we need to explore new ways to help retirees unlock equity in their home without the need to downsize or compromise their long-term well-being.” , Hillier said.