Key takeaways
More Australians are turning to family support. Rising living and housing costs are pushing many to consider early inheritance just to manage day-to-day expenses.
Younger generations are feeling the pressure; most Gen Z, in particular, is leading this trend, often using funds for rent and basic living costs rather than wealth creation.
Early inheritance is a short-term fix, not a strategy. While it can provide relief, long-term financial security still depends on personal financial discipline and smart investing.
How are Australians managing the rising cost of living and housing?
Well, new research from Money.com.au reveals that 23% of Aussies have asked or are considering asking for an early inheritance from their parents or grandparents to help cope with the rising cost of living.
The data highlights that among this group, almost half (47%) say their ‘living inheritance’ would go towards rent or general living expenses, while 31% would use it for a house deposit or to pay down their mortgage.
Additionally, 38% say the funds would help cover medical or healthcare costs, while 18% would use the money to pay down debts like credit cards, personal loans or student loans.
A smaller portion would put the money towards childcare or education expenses (6%), while 3% would use it to support their business.
Money.com.au’s Finance Expert, Sean Callery, says cost-of-living pressures are prompting many Australians to rethink when family wealth is passed down.
He further said:
“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.
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 survey also found that 41% of Australians wouldn’t ask family for an early inheritance and 36% say they don’t expect to receive an inheritance at all.
- Also read:6 Lessons from Robert Kiyosaki’s Rich Dad Poor Dad to Build Wealth and Financial Independence
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- Also read:How does my super get taxed?
- Also read:Why Testamentary Trusts Aren’t Just for the Rich: A Guide to Safeguarding Your Legacy Introduction
Gen Z leading the early inheritance trend
The survey found that nearly half of Gen Z (49%) say they have asked or would consider asking family for an early inheritance, compared with 37% of Millennials and 15% of Gen X.
Among Gen Z respondents who’ve asked or are considering asking, 61% say the money would go towards rent or everyday living costs, compared with 45% of Millennials and 38% of Gen X.
Gen X respondents are the most likely to say they would use early inheritance for a home deposit or mortgage repayments (44%), followed by 36% of Millennials and 19% of Gen Z.
Gen X again ranks highest, with 41% saying they would use the money for healthcare costs, followed by Gen Z (36%) and Millennials (34%).
Final note...
What this tells me is that many Australians aren’t looking to get ahead, they’re simply trying to stay afloat.
But relying on an early inheritance isn’t a strategy… it’s a short-term solution at best.
The real lesson here is the importance of becoming financially self-reliant. Because in today’s challenging environment, long-term wealth won’t come from what you might receive…
It will come from the financial decisions you make today.
