Financial advisors report many over-65s are helping family members rather than splurging – though travel is a thing.
NAB head of behavioural economics Dean Pearson said a survey of 2000 Australians – not all of them NAB customers – in the first three months of the year found far fewer over-65s had made cutbacks than people from younger age groups.Alamy
“For my clients at the higher end of wealth, I am seeing many more extended family holidays, where the parents or grandparents pay for a big overseas or domestic holiday for everyone,” Shadforth private wealth adviser Charlie Fraser said. “We are absolutely seeing self-funded retirees, even retirees on partial age pension payments, looking to help their children, given the high cost of living, by contributing towards grandchildren’s school fees, holidays and help them with mortgage repayments, usually in the form of lump sum gifts to their children,” he said.
“It may well be that what we’re seeing is the impact on those households who benefit from higher rates via their interest-bearing assets offsetting the impact on those households who bear the cost of higher interest rates,” he said. “Many Baby Boomers have either delayed travel or did not have the time during their working lives so often play catch up post-retirement,” Hewison Private Wealth director Glenn Fairbairn said.
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