Retirees retain savings for themselves

STINGY older Australians won’t be leaving money behind for their children instead they will be splashing their cash on themselves, new research has revealed.

Skiing – spending kids’ inheritances – is the new norm with only one in four older Australians now admitting leaving a wad of cash behind for their kids is top priority.

The new National Seniors Australia and Challenger report dubbed “Seniors more savvy about retirement income”, released today, surveyed more than 5800 Australians aged 50 and older.

The results showed only 3 per cent of respondents plan to preserve all of their savings for their younger generations and plan on handing it over as an inheritance.

But the report also revealed some Australians had said they had already given their children enough of a financial helping hand and they needed to focus spending on themselves in retirement.

National Seniors’ research director John McCallum said the rising cost of living pressures had undoubtedly made it tougher for older Australians to pass money down to younger generations.

“Retirees have spoken and it’s clear that bequests are not the priority that many think they are,’’ he said.

“If you’re lucky you’ll get some help but otherwise get on with it.”

Mr McCallum also said the tightening of pension eligibility rules had put more finan- cial strain on retirees once they stop work.

Figures from the Association of Superannuation Funds of Australia have found to live comfortably in retirement couples require $ 640,000 at retirement and singles require $ 545,000.

This presumes retirees own their home outright and are relatively healthy.

Australians’ life expectancy is also stretching out – ABS data shows in 2015 male life expectancy is 80.5 and females is 84.5.