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One in four aussies to spend inheritance on aged care .
By NCA NewsWire
Nearly three-quarters of Australians would sacrifice their inheritance so their parents and grandparents can spend the money on aged care instead , new research has found .
Australians are dying wealthier than ever and have gifted almost $ 1.4 trillion — or about $ 67bn a year — in inheritances over the past two decades , according to the report .
But new polling suggests most millennials and members of Gen X would forgo this if it meant their older relatives could have a better quality of life in their twilight years .
Of those who responded to the nationally-representative survey of 1,000 people of all age groups , about half said they expected to receive an inheritance , and 73 per cent said they ’ d be willing to miss out regardless .
Australian aged care software provider CompliSpace released the survey on Tuesday along with a major report into aged care funding as the Albanese government puts the finishing touches on its first full federal budget .
The compliance and governance software maker ’ s chief executive , David Griffiths , has called for a “ national conversation ” about how aged care is funded .
He said he wanted to revive the debate over increasing how much people pay outof-pocket for their aged care .
“ The inescapable fact is that Australia is experiencing an aged care funding crisis and is reaching a tipping point ,” Mr Griffiths said .
“ There are limits to how much taxpayers can provide to support older Australians who can fund their care .”
The report argued that co-contributions from aged care recipients would help the sector improve and expand its services and allow the government to direct funds towards subsidising the vulnerable older Australians most in need .
Mr Griffiths said it was no longer possible for taxpayers to fund the care of wealthy older Australians who could afford to pay for it themselves .
“ Co-contribution models are a way to both make that possible and to salvage aged care from becoming an unsustainable industry that fails older Australians ,” he said .
The paper referred to research by the Productivity Commission , which found the average Australian inheritance today is about $ 125,000 .
The recipient is about 50 years old , close to peak earning capacity , and already established in a home they own .
Thirty-eight per cent of respondents to the CompliSpace survey agreed older people should sell their homes if needed to fund their aged care .
Additionally , 47 per cent said they planned to leave an inheritance of their own despite supporting their relatives to spend their own money on aged care .
The report also shone new light on the inheritances Australians give and receive . Most people — 27 per cent of those surveyed — expect to receive between
$ 50,000 and $ 250,000 , with 5 per cent expecting an inheritance of between $ 1m and $ 2m .
NSW families bequeath the most wealth , with 19 per cent of respondents who had received an inheritance having assessed its value between $ 500,000 to $ 2m .
Eighty per cent of South Australians who have benefited from an inheritance received it from their parents , by far the highest proportion in the country – and they are also the most likely to put their heritage into superannuation .
Canberrans are the most likely to receive a cash inheritance — 61 per cent — and half of ACT respondents said they would leave their assets and savings to their partner .
In contrast , 42 per cent of Tasmanians said they would leave savings to their children , whereas 28 per cent said they ’ d leave theirs to their partner .
Eighty-four per cent of Western Australians and 86 per cent of Tasmanians supported their parents and / or grandparents using savings to fund their retirements , making them the state-based cohorts most supportive of the idea .
Sixty-six per cent of Northern Territory residents and 69 per cent of Tasmanians expected that older people would fund their own aged care , more than in other jurisdictions .
Prime Minister Anthony Albanese made aged care reform one of his centrepiece election promises .
He used his reply speech to the Morrison government ’ s last federal budget in March 2022 to pledge an additional $ 2.5bn to fix the troubled sector . ■
agedcareinsite . com . au 7