Younger Aussies are set to get a major cash boost thanks to the Baby Boomers who currently hold most of the country’s wealth.
The median Aussie inheritance is around $30,000 and can come in many forms, such as property, vehicles or cash, according to a Productivity Commission report last year.
The report estimated older Aussies would hand over around $3.5 trillion - or $175 billion per year - over the next two decades.
And the combination of an ageing population and a declining birth rate meant there were fewer family members for the great wealth transfer to be shared between, the Productivity Commission said.
“Intergenerational inheritances increased from $24 billion in 2002 to $52 billion in 2018, largely due to increases in per-person wealth,” the report said.
But, despite a huge amount of wealth set to be passed on to the next generation, a new report from Finder found Aussies were ill-prepared to deal with an untimely death in the family.
A nationally representative survey of 1,054 respondents revealed 60 per cent of Australians – equivalent to 12 million people – did not have a will.
That was despite a 33 per cent uptick in people taking one out during the pandemic. The research found 40 per cent of Aussies had prepared a will – up from 30 per cent in March 2020.
Finder insurance expert James Martin said, since the pandemic, the rise in Australians taking out a will had been quite substantial.
“The global pandemic brought into sharp focus our own mortality and many Australians took this as an opportunity to get their affairs in order,” Martin said.
“Some even got their hands on online kits available to ensure they were covered for the unpredictable.”
Less than 1 in 3 (31 per cent) Aussie women have their affairs in order, compared to half of men (50 per cent).
Martin said while estate planning could seem morbid and gloomy, planning now could save your loved ones plenty of stress and heartache in the future.
“The biggest benefit of drawing up a will is the peace of mind it brings in ensuring your hard-earned assets are distributed amongst those you wish,” he said.
“By developing a comprehensive estate plan, you can guarantee that your assets go to the right people.”