Almost one in two baby boomers expect to retire with debt because they’re still supporting their kids and elderly parents, a new report has found.
Dubbed the 'sandwich generation', older working Australians are providing for their parents’ medical costs and health expenses while also helping out their own children with education and everyday expenses, and significantly, a deposit for a home, the REST Industry Super report says.
The report surveyed 1048 Australians aged over 35 – and about 188 people aged 65-69.
It found most of the spending went to their adult children – almost half said they still help their kids even after they fly the coop.
But their biggest source of debt was credit cards, followed by mortgages and then unpaid bills.
REST chief executive Damian Hill said future retirees may live an even more frugal retirement than anticipated.
"These are people aged 50 to 65, and these are people who not only are they continuing to support their adult children they never get off their hands,” he said.
“They're also having to start supporting their parents - their retired parents - who have not saved enough in retirement."
But they must find a balance between helping others and future-proofing their own retirement.
"It's clear that many Australians aren't living the retirement that they wanted, but with careful budgeting and spending, it's certainly possible to achieve this."
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