Adults living at home are proving a major burden to their parents, making
them work harder and retire later, research suggests.
Neilsen Media Research surveyed over 25,000 Australians on behalf of Wizard
Home Loans, and found baby boomer parents with children over the age of 18 at
home fare much worse than their counterparts living alone.
There are approximately half a million Australians over the age of 55 with
kids still at home, who Wizard terms as 'busted boomers', half of whom say they
have less disposable income than those without kids at home, known as 'empty
nesters'.
As a result, busted boomers are working longer hours and putting off their
plans for retirement.
Wizard chairman Mark Bouris said this has a significant impact on the
property market.
"Boomers' preference for property investment to fund retirement will take a
hit as their adult kids stay at home longer," Mr Bouris said in a statement.
"Busted boomers are working longer hours, have less disposable income, are
changing or delaying their retirement intentions, and are less financially able
to invest in property as a retirement security," Mr Bouris said.
A contributing factor is the lack of financial contribution children make to
the household, although in many cases this may be a result of parents' goodwill.
"While 39 per cent of busted boomers charge board, 41 per cent of those
charge $100 or less, and an overwhelming 50 per cent of busted boomers simply do
not charge board at all," Mr Bouris said.
The research found only nine per cent of 55 to 60 year old busted boomers
have retired, compared to 16 per cent of others in that age group.
And they're working harder, with boomer busters averaging 36.1 hours of work
each week, compared to the empty nesters' 34.6.
Despite this, 62 per cent of respondents said they are happy to have their
kids at home.
It's not all bad news for the property market, either.
"While busted boomers are financially disadvantaged now compared to empty
nesters, they'll bring the investment dollars to the market as empty nesters
start winding up their investment spending," Mr Bouris said.
"Which is promising for the longevity of the Australian property market."
SOURCE:
theage.com.au
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