Older Aussies 'using savings accounts to finance their children'

Thursday 06 October 2011

Article by Mozo

A trend that has started to emerge is that older Australians are using the funds in their savings accounts to financially support their children.

Baby Boomers 'supporting children with savings accounts'

John Oliver, director and senior adviser at Goldsborough Financial Services, asserted that many Baby Boomers have children with jobs and youngsters of their own.

However, he suggested that there has been an increase in the number of people who have to use their funds to help their offspring.

"The problem that now exists is that income or savings that were set aside for retirement are now being used to financially support children. I have seen it occur with several of my clients," he stated.

He recommended that those in this position consider either stopping using their savings for this purpose or ensure their children have personal insurance in place.

Last month, financial adviser at Shadforths Charles Badenach asserted that it is better to encourage children to put money into high interest savings accounts from an early age.

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