Banking on the unknown: Young Australians expect big inheritances

13 August 2025

New research from Colonial First State (CFS) has revealed a growing disconnect between the retirement realities of older Australians and the financial expectations of their children.

Based on a survey of 2,250 Australians, the research found nearly half of those aged 18–29 expect an inheritance, with the average anticipated amount exceeding $525,000—nearly double the amount expected by those aged 50–64. 

However, this optimism may be misplaced and highlights the financial pressures facing young people who are increasingly looking to older generations to secure their financial future. 

“Young people are hopeful about receiving financial support in the form of an inheritance due to rising living costs, stagnant wage growth and housing pressures,” said Kelly Power, CEO of CFS Superannuation. 

“At the same time, older generations are navigating the complexities of retirement planning. They want to support their families while ensuring their own financial security. It's a delicate balance that requires careful planning and open communication,” she said.

“Sitting down with a financial adviser can be hugely valuable for families as they navigate the unique financial challenges of different life stages.”

While most Australians plan to leave an inheritance, only 38% have a will, raising questions about how and when assets will be passed on. 

Those who do have a will are far more selective about what they plan to bequeath. The family home, vehicles, and any remaining superannuation top the list, but investment portfolios and other property have largely been earmarked for retirement income.

CFS Head of Technical Services Craig Day said this shift reflects a broader trend among older Australians who are balancing their desire to leave a legacy with the need to fund retirements that could span more than three decades. 

“With longevity increasing, many people may need to start prioritising financial security over inheritance planning,” Mr Day said. 

“Young people may be overestimating the size and certainty of future inheritances. As their parents enter retirement, the focus could be shifting from wealth transfer to sustaining a modest, debt-free lifestyle.”

“It’s important that young and old can discuss their expectations and plans openly. By having these conversations early, families can ensure that everyone is on the same page and can make informed decisions that align with their values and goals,” he said. 

“It’s not just about passing on wealth—it’s about passing on clarity. Families need to talk about their intentions, their needs, and their plans. That’s where advice becomes invaluable.”

To help Australians take action, CFS has recently enhanced its Find an Adviser tool, making it easier than ever to connect with qualified professionals who can guide families through retirement and estate planning.

James Mitchell, Senior Manager External Communications, Colonial First State

james.mitchell@cfs.com.au