Early inheritance conversations grow as living costs rise
Australians facing higher household and housing bills are increasingly considering a request once seen as off-limits: receiving part of an inheritance early.
Research by Money.com.au found 23% of Australians have asked, or are considering asking, parents or grandparents for an early inheritance to help manage cost-of-living pressures. Among that group, 47% said any “living inheritance” would be used for rent or day-to-day expenses, while 31% would put the money towards a home deposit or reducing mortgage balances
Source: Money.com.au
The survey also reported that 38% would use the funds for medical or healthcare costs. A further 18% said they would apply an early inheritance to debts such as credit cards, personal loans or student loans. Smaller proportions nominated childcare or education (6%), or business support (3%).
“Traditionally, inheritance is something people receive later in life, but for many Australians the pressure of rising living costs and housing expenses is prompting them to start conversations with their parents or family members about accessing that financial lifeline earlier, if possible,” said Sean Callery (pictured right), finance expert at Money.com.au.
“In some cases, parents or grandparents are effectively providing a ‘living inheritance’ to help their adult children or grandchildren cover rent, scrape together a house deposit, pay down their mortgage, or even cover medical costs.
“While some families may choose to bring inheritance forward, it’s not something people should expect, no matter how tough things get financially. Any decision to provide an early inheritance should be carefully weighed to ensure it doesn’t compromise the older generation’s retirement or long-term financial security.”
The research also suggested many Australians remain reluctant to raise the subject. It found 41% would not ask family for an early inheritance, while 36% said they do not expect to receive an inheritance at all.
Generational differences were marked. Nearly half of Gen Z respondents (49%) said they had asked or would consider asking for an early inheritance, compared with 37% of Millennials and 15% of Gen X.
Among Gen Z respondents who had asked or were considering asking, 61% said the money would go towards rent or everyday living costs, compared with 45% of Millennials and 38% of Gen X. Gen X respondents were most likely to nominate using early inheritance for a deposit or mortgage repayments (44%), followed by Millennials (36%) and Gen Z (19%).
Healthcare was also a consistent driver. Gen X again ranked highest, with 41% saying they would use early inheritance for healthcare costs, followed by Gen Z (36%) and Millennials (34%).
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