The Trust in Ageing study of more than 2,000 ‘baby boomers’ nationally –all of whom own their home and/or an investment property and are solely or jointly responsible for financial decisions – explores the attitudes shaping how this generation of Australians approaches its finances, family, lifestyle, and future.

Key findings include:

Uncertain, and held back

• Despite 75 per cent of ‘baby boomers’ believing that they live comfortably or with financial freedom, only 14 per cent say they are ‘enjoying their wealth’ or ‘enhancing their lifestyle’. 
• While 65 per cent of ‘baby boomers’ say they know how much money they will need to support themselves in later life their estimates vary widely.
• One in four characterise themselves as continuing to build and preserve wealth, needing to actively grow assets, income, and investments.

‘Bank of mum and dad’… generous, but constrained 

• Some 65 per cent have given a gift of $10,000 or more to their children. 
• The most common reasons for gifting to children and/or grandchildren are helping with a first home (36 per cent), providing general financial stability (24 per cent), help with wedding costs (23 per cent); car purchases and education (22 per cent and 21 per cent respectively). 
• One in five respondents said that they had conditions for their gifting including complete or partial repayment, or non-financial expectations.
• Contributions are often substantial relative to the total cost. For example, average gifting towards a first home was 28 per cent of the total cost of the home. 
• Some 41 per cent of those who gifted money had no process or documentation around it, and only 2 per cent of those who have gifted funds sought advice from qualified financial advisers on their giving arrangements.
• More than half (54 per cent) have the capacity to provide more financial support but choose not to because they are uncertain about their own future.

Planning for later years

• Approximately 43 per cent of ‘baby boomers’ have not begun planning for the final stage of their life. 
• Of those who have begun planning, 33 per cent have reduced debt, and 25 per cent have set up health care directives or end-of-life care. 
• There are four barriers to taking action about the future - lack of knowledge about aged care options (28 per cent), professional advice perceived as too expensive (28 per cent), lack of awareness of support available to help them plan (18 per cent), and financial products seen as confusing and hard to understand (18 per cent).
• Some 23 per cent have downsized their home, despite many living with limited mobility, increased care needs and requirements for support at home. Downsizing moves from a very low priority at age 61-65, to the most important priority for those aged 71-75 years.

Who do they trust? 

• Aside from their spouse, when it comes to planning their final years, older Australians trust financial advisers most, followed by their accountant, and children.

Kelly Bayer Rosmarin, Group Managing Director, Australian Unity, said the research was commissioned to better understand the concerns, priorities, and hopes of older Australians.

“A lot has been written and said about ‘baby boomers’, so we wanted to hear from them directly. Our research highlights the opportunity that exists to support Australians to plan for their later years with confidence.

“Few Australian organisations are as closely connected to the opportunities and challenges of an ageing population as Australian Unity. With our health, wealth and care businesses, we sit at the intersection of some of the most significant decisions that our customers need to make, while serving a growing part of the population that is shaping Australia’s future”, she said. 

Balaji Gopal, CEO, Wealth & Capital Markets, Australian Unity, said the research found uncertainty about the future was holding many older Australians back.

“Concerns about health shocks, how long money will last, policy changes and market volatility make people reluctant to put their wealth to work,” he said.
“This can lead to a fixation on savings targets rather than seeing wealth as an enabler of wellbeing – for us and the people we care about.

" Current industry benchmarks don’t always reflect the true cost of ageing, particularly significant health and aged care costs. So it’s not surprising that Australians are uncertain about whether their savings will last and cautious about spending.

“We need to address the uncertainty people feel, tailor solutions to their tax and income needs, and support them in their lifestyle goals.

“Whether that means investing to improve their lifestyle today, enabling people to give to their children and grandchildren, or taking the steps needed to downsize and transition to supported accommodation later in life, older Australians need access to the tools that can put their wealth to work in ways that support their wellbeing.”

Australian Unity engaged Dr Juliette Tobias Webb, Director, Behavioural Science and Adjunct Professor at the AI and Cyber Futures Institute, to advise on the research approach and provide analysis that focused on mindset and behaviour, rather than defaulting to product solutions. 

Dr Tobias Webb said reducing uncertainty about the future for older Australians and helping them feel more supported in their planning can help them take practical steps to shape their future years.

“It’s about preserving trust, choice and independence, while ensuring people have the support they need to navigate the challenges and opportunities that come with this stage of life. 

“Planning for the future needs to feel achievable. Whether it is investment, accommodation, support or care, it’s not about doing everything at once, but rather, breaking the process into clear, manageable steps—booking an initial conversation, estimating future costs, or simply identifying the first practical action”, she said. 

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E: media@australianunity.com.au

About Australian Unity

Established in 1840 by a group of everyday Australians to support the health and financial welfare of their families and community, Australian Unity has grown into one of the largest mutual companies in Australia with 9,700 employees, 385,000 members and 700,000 customers. Its portfolio of diverse thematically linked health, wealth and care services support wellbeing and aim to make a positive impact in what ‘matters’ to individuals and communities.