'Kidults' call on Baby Boomer parents to help fund first home
One in five Baby Boomers still expect to help their adult-children buy their first home, a RaboDirect survey has found.
"With the news of sharemarkets tumbling globally, Aussies are rightfully anxious about the stability of their superannuation," RaboDirect general manager Greg McAweeney said.
"Baby Boomers have enough to be worried about without added concerns about dipping into their super to help their kids buy their first home," he added.
The bank's National Savings and Debt Barometer also found that among those aged less than 40 who intend to take out a home loan in the next few years, half (51 per cent) are not currently living with a partner, suggesting they will take on the loan themselves.
At the same time, more than one third of Gen Y (35 per cent) said they can't afford to buy a house without assistance from their parents.
"With the first Baby Boomers reaching 65 this year and many of them moving into retirement, there's likely to be increasing pressure on parents to dip into their retirement savings to fund their 'Kidults' first home," McAweeney said.
The concern here is that making such a commitment in an unstable economic environment may drive each generation further into debt, he said.
McAweeney urged Gen Y and their parents to talk about their finances and expectations honestly to avoid financial stress.
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