ARE YOU GOING WITHOUT TO LEAVE AN INHERITANCE? WHY RETIREES ARE TOLD TO ENJOY IT

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Many of us were raised to believe the family home is something you hand down, not something you live on.

But a growing number of experts are asking whether older Australians are going without in retirement just so they can leave an inheritance.

Australian retirees sit at the centre of an estimated $3.5 trillion transfer of wealth between generations, according to equity release provider Homesafe Wealth Release.

Yet many are living more frugally than they need to.

The real cost of a comfortable retirement

According to the Association of Superannuation Funds of Australia (ASFA), a comfortable retirement for a couple who own their home now costs $78,998 a year, or $1,513 a week.

ASFA calculates the full Age Pension covers only around 60 per cent of that budget, leaving a weekly gap of $608.

Despite this, the federal government's Retirement Income Review found most retirees die with the bulk of the wealth they had at retirement still intact.

That is largely because people are unsure how long their money needs to last, and few draw on the equity in their home.

Regrets about holding back

Perhaps the most telling figure comes from TAL's 2026 What I Wish I Knew About Retirement survey of 2,000 Australians aged 55 and over.

It found one in five retirees in their 80s wished they had spent more freely in their early retirement years.

Those early years, when health and energy are often at their best, are when many people most want to travel, help out with grandchildren or finally tackle that renovation.

How big are inheritances, really?

Inheritances in Australia are already substantial.

The Productivity Commission's 2021 report found Australians transferred about $1.5 trillion between 2002 and 2018, around 90 per cent of it as inheritances.

It also found inheritances and gifts could rise four-fold in real terms by 2050.

Is it time to rethink the inheritance?

Homesafe CEO Dianne Shepherd says many retirees feel caught between enjoying their later years and feeling obliged to preserve the family home for their children.

"The real question isn't whether to leave something behind. It's whether going without today is the price you want to pay for it," she said.

She argues that financial independence in retirement can be a gift to the family in itself.

When parents can pay for their own care, home repairs and the occasional holiday, it can take pressure off their adult children.

Ms Shepherd says the choice does not have to be all or nothing, and encourages families to talk it through together, ideally before a crisis forces a decision.

It is worth noting that Homesafe offers a home equity release product, and there are a number of ways retirees can access the value of their home, including downsizing.

Questions to ask before you decide

What lifestyle do I want for the next 10 to 20 years, and what will it cost?

How much do I genuinely want to leave, and to whom?

Have I talked openly with my family about my plans?

Have I compared every option, including downsizing, with independent legal and financial advice?

Start the conversation

Talking about money and inheritance can feel awkward, but it is often a relief for everyone once it is out in the open.

Your children may well tell you they would rather see you enjoying yourself than scrimping for their sake.

It can also help them plan, rather than making assumptions about what may or may not come their way one day.

If the topic feels too hard to raise, a family meeting with a financial adviser or solicitor present can keep things calm and focused.

This story is general information only and is not financial advice, so speak to a licensed financial adviser about your own situation.