Now, we have been talking about, uh, this, this idea, this, uh, research. That's, uh, that's a little uncomfortable, I guess, but the numbers are in, and they don't lie. A massive 41% of Aussies. That's around 8.8 million people say they're expecting to receive an inheritance. And that's to help them get ahead in life. With 1 in 10 of us relying on the future windfall to buy a house, retire or to reach other big financial goals. But here's the thing banking on an inheritance means you're essentially counting on someone close to you passing away. Now, apart from being pretty presumptuous, I think it's also far from guaranteed. Is this really a smart financial strategy, or are we setting ourselves up for some disappointment? Let's chat with Sarah Megginson, now the personal finance expert at finder, to get her take. Good afternoon to you, Sarah.

Now, we have been talking about, uh, this, this idea, this, uh, research. That's, uh, that's a little uncomfortable, I guess, but the numbers are in, and they don't lie. A massive 41% of Aussies. That's around 8.8 million people say they're expecting to receive an inheritance. And that's to help them get ahead in life. With 1 in 10 of us relying on the future windfall to buy a house, retire or to reach other big financial goals. But here's the thing banking on an inheritance means you're essentially counting on someone close to you passing away. Now, apart from being pretty presumptuous, I think it's also far from guaranteed. Is this really a smart financial strategy, or are we setting ourselves up for some disappointment? Let's chat with Sarah Megginson, now the personal finance expert at finder, to get her take. Good afternoon to you, Sarah.

Hi. Thanks for having me.

Hi. Thanks for having me.

Listen, let's be honest. Relying on an inheritance means that waiting. It means essentially, you're waiting for a loved one to die. Are we really thinking the emotional and ethical side of this through. This can't be true. This this research you've got.

Listen, let's be honest. Relying on an inheritance means that waiting. It means essentially, you're waiting for a loved one to die. Are we really thinking the emotional and ethical side of this through. This can't be true. This this research you've got.

I know it is pretty. It's pretty uncomfortable, as you said. Um, but it is true. And what we have in the next two decades is $3.5 trillion worth of intergenerational wealth that is set to be inherited and passed down through families. So I think with the cost of living crisis in the last few years, and really the housing affordability crisis of the last couple of decades, for a lot of people, this seems like their only pathway to home ownership, and it seems like a financial lifeline. But as you said, it is just so risky. And we see so many stories of people not getting what they expect in an inheritance or their their loved ones wishes are really surprising to them. So it can be a very risky way to be banking on your financial future.

I know it is pretty. It's pretty uncomfortable, as you said. Um, but it is true. And what we have in the next two decades is $3.5 trillion worth of intergenerational wealth that is set to be inherited and passed down through families. So I think with the cost of living crisis in the last few years, and really the housing affordability crisis of the last couple of decades, for a lot of people, this seems like their only pathway to home ownership, and it seems like a financial lifeline. But as you said, it is just so risky. And we see so many stories of people not getting what they expect in an inheritance or their their loved ones wishes are really surprising to them. So it can be a very risky way to be banking on your financial future.

Well, yeah, but 10% of us are saying that they're banking on the inheritance to retire or buy a home that's financially, this is fraught with danger.

Well, yeah, but 10% of us are saying that they're banking on the inheritance to retire or buy a home that's financially, this is fraught with danger.

1,000%. And in fact, I was just, um, in conversation with someone on a plane recently, and she was in her 80s, and we just struck up a conversation and she told me her whole life story, including the fact that she plans on giving her house to her 11 year old granddaughter. Um, and she said, I plan to leave it to her because my kids, basically, they annoy me and I don't want them to see a cent of it. And I thought, oh my goodness, that is going to be a big world of pain when that happens, because you can see the family members fighting over it. Um, and that's what can happen. Sometimes these things can surprise you. And the real winners are the lawyers who you will have to spend a fortune on to, to battle these things out. Um, but I think what this research really does demonstrate is just how financially unstable a lot of people are, and how much they're looking at all options to try and figure out their financial future. You can't blame people for looking ahead. Um, but I think if this is something you're banking on, even though money conversations can feel very awkward and uncomfortable, it's worth talking to your family about it. And, you know, try and avoid those surprises and do it in a delicate way where you can discuss what is the plan for inheritance, um, and start to have those conversations now so that you're not as blindsided by surprises when it happens.

1,000%. And in fact, I was just, um, in conversation with someone on a plane recently, and she was in her 80s, and we just struck up a conversation and she told me her whole life story, including the fact that she plans on giving her house to her 11 year old granddaughter. Um, and she said, I plan to leave it to her because my kids, basically, they annoy me and I don't want them to see a cent of it. And I thought, oh my goodness, that is going to be a big world of pain when that happens, because you can see the family members fighting over it. Um, and that's what can happen. Sometimes these things can surprise you. And the real winners are the lawyers who you will have to spend a fortune on to, to battle these things out. Um, but I think what this research really does demonstrate is just how financially unstable a lot of people are, and how much they're looking at all options to try and figure out their financial future. You can't blame people for looking ahead. Um, but I think if this is something you're banking on, even though money conversations can feel very awkward and uncomfortable, it's worth talking to your family about it. And, you know, try and avoid those surprises and do it in a delicate way where you can discuss what is the plan for inheritance, um, and start to have those conversations now so that you're not as blindsided by surprises when it happens.

Well, I know that we, uh, we were just speaking yesterday, earlier in the week, um, as part of our legal lowdown about wills and wills, how they're bad. But, you know, you should set up a proper will with a lawyer to, to, you know, make sure that everything's sort of fair and equitable because, you know, these sorts of things really fracture families. I can't believe it brings out the worst. I know in like, my family, distant family. It brings out the worst in people money and fighting over, you know, their assumed inheritance and things. So you know, it it it also means that a lot of people are dreaming of money that may not come. So I guess get your finances in order now before it ever gets down to that. You know what? If nobody has anything to to hand down.

Well, I know that we, uh, we were just speaking yesterday, earlier in the week, um, as part of our legal lowdown about wills and wills, how they're bad. But, you know, you should set up a proper will with a lawyer to, to, you know, make sure that everything's sort of fair and equitable because, you know, these sorts of things really fracture families. I can't believe it brings out the worst. I know in like, my family, distant family. It brings out the worst in people money and fighting over, you know, their assumed inheritance and things. So you know, it it it also means that a lot of people are dreaming of money that may not come. So I guess get your finances in order now before it ever gets down to that. You know what? If nobody has anything to to hand down.

Well, you're 100% right. It is the number one cause of friction between families, Especially in those situations where what you expect might not match up with the reality. There are so many situations where people think that their loved one is in a different financial position to what they actually are, or a surprise gambling addiction is revealed. When my granddad died, we discovered that he had a long standing relationship with Reading Digest of all people, and he'd sent them tens of thousands of dollars over the years, um, that we had no idea about. You know, so you can be really surprised. But yeah, it was it was a long, a long game, but they were playing with him. But, um, you can be really surprised by some of the, the things that come out in an, when someone passes away and there's an inheritance conversation. And I think there's a real sense of, you just mentioned the word equitable, and what you think is equitable and fair might be very different to what your parents or your loved ones think is fair. And that's what can really catch you off guard. You know, some parents will be very fair and cut things, everything, you know, right down the middle with their children. Other parents will look at what their kids have and they will, uh, you know, make that decision based on what they think their children need. And it can there can be a lot of different points of view as to how it should be split versus how it actually is. And I think with money conversations, everyone feels awkward and uncomfortable. But it can start, like I said, with a conversation of do you have a will? And do you know what your what your plans are for, what happens next and what you would like? How you would like to be buried? Would you like a cremation or what would you like? Start with that kind of conversation and then it can lead into and what will happen next with the finances, so that you can gently get into that conversation and hopefully, you know, discuss these things and allay any of your concerns and get a realistic idea of what's happening.

Well, you're 100% right. It is the number one cause of friction between families, Especially in those situations where what you expect might not match up with the reality. There are so many situations where people think that their loved one is in a different financial position to what they actually are, or a surprise gambling addiction is revealed. When my granddad died, we discovered that he had a long standing relationship with Reading Digest of all people, and he'd sent them tens of thousands of dollars over the years, um, that we had no idea about. You know, so you can be really surprised. But yeah, it was it was a long, a long game, but they were playing with him. But, um, you can be really surprised by some of the, the things that come out in an, when someone passes away and there's an inheritance conversation. And I think there's a real sense of, you just mentioned the word equitable, and what you think is equitable and fair might be very different to what your parents or your loved ones think is fair. And that's what can really catch you off guard. You know, some parents will be very fair and cut things, everything, you know, right down the middle with their children. Other parents will look at what their kids have and they will, uh, you know, make that decision based on what they think their children need. And it can there can be a lot of different points of view as to how it should be split versus how it actually is. And I think with money conversations, everyone feels awkward and uncomfortable. But it can start, like I said, with a conversation of do you have a will? And do you know what your what your plans are for, what happens next and what you would like? How you would like to be buried? Would you like a cremation or what would you like? Start with that kind of conversation and then it can lead into and what will happen next with the finances, so that you can gently get into that conversation and hopefully, you know, discuss these things and allay any of your concerns and get a realistic idea of what's happening.

Alright, so don't lead with is that wall structural? If I was to knock it down when this house becomes mine, probably don't lead with that.

Alright, so don't lead with is that wall structural? If I was to knock it down when this house becomes mine, probably don't lead with that.

That's a little bit insensitive.

That's a little bit insensitive.

Fair enough. Um, what about, you know, it reminds me about, like, you know, when you buy a lotto ticket. And I've become very good at buying these because I always think I'm going to win 100 million and I've already spent it in my head. You know, like I've already I've already got I know where I'm investing it. I know what I'm buying. I know I wouldn't be flashy, I'd be very generous. I'd be an excellent rich person. And that's what happens when you buy a lotto ticket. It's the same sort of thing that happens. You dream about these things and you forget about the reality of, well, you may not get anything. And, you know, it's probably better to start looking at your own personal finances and getting them in order before you go dreaming about what might be.

Fair enough. Um, what about, you know, it reminds me about, like, you know, when you buy a lotto ticket. And I've become very good at buying these because I always think I'm going to win 100 million and I've already spent it in my head. You know, like I've already I've already got I know where I'm investing it. I know what I'm buying. I know I wouldn't be flashy, I'd be very generous. I'd be an excellent rich person. And that's what happens when you buy a lotto ticket. It's the same sort of thing that happens. You dream about these things and you forget about the reality of, well, you may not get anything. And, you know, it's probably better to start looking at your own personal finances and getting them in order before you go dreaming about what might be.

Yeah, that's exactly right. And also, we're not all in the same boat. There are many, many Australians who are not going to get anything in inheritance. Um, when my dad passed away, there was nothing left to give, you know, there was no inheritance. And I was very aware of that before he passed away. Um, so there was no missed expectations there. But it is a really risky strategy to bank on it. Like we were saying, our research shows that 1 in 10 people are actually banking on it. Um, and another 19% said it would. Look, if it comes through, it would definitely improve my financial situation, but I'm not solely relying on it, and I think that's a better place to be. If you can be aware of what might be coming your way, but you're not relying on that to make your big financial decisions. Um, it lands in the nice to have, not the need to have bucket, but there are many, many Australians who are in a tough financial position, so you can't blame them for looking ahead and seeing what might be possible. But I think it's definitely something that you should be putting in the back burner in your mind, not relying on it as a financial strategy.

Yeah, that's exactly right. And also, we're not all in the same boat. There are many, many Australians who are not going to get anything in inheritance. Um, when my dad passed away, there was nothing left to give, you know, there was no inheritance. And I was very aware of that before he passed away. Um, so there was no missed expectations there. But it is a really risky strategy to bank on it. Like we were saying, our research shows that 1 in 10 people are actually banking on it. Um, and another 19% said it would. Look, if it comes through, it would definitely improve my financial situation, but I'm not solely relying on it, and I think that's a better place to be. If you can be aware of what might be coming your way, but you're not relying on that to make your big financial decisions. Um, it lands in the nice to have, not the need to have bucket, but there are many, many Australians who are in a tough financial position, so you can't blame them for looking ahead and seeing what might be possible. But I think it's definitely something that you should be putting in the back burner in your mind, not relying on it as a financial strategy.

I think, Sarah, I think we'd all like to think that there's a golden ticket, and if it's an easier way than the slog, you know, the 9 to 5, it gives us a little bit of, without a horrible pun, light at the end of the tunnel for us that, you know, we might, you know, get some reprieve from what is a terrible cost of living crisis that we're living through currently. And also home ownership is out of reach for so many of us. Um, and, you know, I guess in that sense then, Sarah, how do you shift that thinking that, okay, I'm going to come into some money. What if you don't? So how do you shift that thinking and start building your own financial safety net.

I think, Sarah, I think we'd all like to think that there's a golden ticket, and if it's an easier way than the slog, you know, the 9 to 5, it gives us a little bit of, without a horrible pun, light at the end of the tunnel for us that, you know, we might, you know, get some reprieve from what is a terrible cost of living crisis that we're living through currently. And also home ownership is out of reach for so many of us. Um, and, you know, I guess in that sense then, Sarah, how do you shift that thinking that, okay, I'm going to come into some money. What if you don't? So how do you shift that thinking and start building your own financial safety net.

Well, I think the really important thing is to focus on your specific situation. And one thing that can really get us undone with our finances is looking at what other people, what we perceive them to have or what their situation is. We can get really stuck in a mental cycle of unfairness. And why don't I have that? And it's not fair that they have that. So I would really, really look at your situation and focus on what's achievable for you and start to build yourself a plan. And depending on your financial situation, your plan right now might be I can afford to save $10 a week, or your plan might have a lot more financial freedom in it, and you might be able to start socking away $200 a week towards your financial goals. But really, have a look at all the options available to you if you want to buy a home. There are many different grants and incentives, and the government is trying to make it easier for first home buyers with lenders mortgage insurance waivers. So look at all of the options that you have to achieve your goals. Now, um, and if this happens and you get a financial windfall down the track, then that's a bonus. But look at what you can do now to try and improve your financial situation and start with those really small baby steps. Even if you can afford $5 a week, that's still over. Time is going to add up to a few hundred dollars, and then you keep building on it from there, and you can start to get yourself into a better financial position.

Well, I think the really important thing is to focus on your specific situation. And one thing that can really get us undone with our finances is looking at what other people, what we perceive them to have or what their situation is. We can get really stuck in a mental cycle of unfairness. And why don't I have that? And it's not fair that they have that. So I would really, really look at your situation and focus on what's achievable for you and start to build yourself a plan. And depending on your financial situation, your plan right now might be I can afford to save $10 a week, or your plan might have a lot more financial freedom in it, and you might be able to start socking away $200 a week towards your financial goals. But really, have a look at all the options available to you if you want to buy a home. There are many different grants and incentives, and the government is trying to make it easier for first home buyers with lenders mortgage insurance waivers. So look at all of the options that you have to achieve your goals. Now, um, and if this happens and you get a financial windfall down the track, then that's a bonus. But look at what you can do now to try and improve your financial situation and start with those really small baby steps. Even if you can afford $5 a week, that's still over. Time is going to add up to a few hundred dollars, and then you keep building on it from there, and you can start to get yourself into a better financial position.

That's far sound advice. Far better advice than banking on Aunt Beryl, kicking the bucket and leaving her whole life's treasures to you. I think that's probably a bit more. That's probably better for us.

That's far sound advice. Far better advice than banking on Aunt Beryl, kicking the bucket and leaving her whole life's treasures to you. I think that's probably a bit more. That's probably better for us.

Absolutely. And I think, you know, our whole discussion here, we've been talking about the financial aspect of it, but there is a huge emotional side to your family member passing away, and you really don't want to be thinking about or concentrating on money issues around that. You want to give yourself that space and time to really grieve and go through that whole process. So, uh, as I was saying, having these conversations before someone passes away is really, really valuable for everyone. If you can manage that and just start with the conversation around wills so that you at least have clarity, and you know that your loved one's wishes are going to be taken into consideration when they do pass away.

Absolutely. And I think, you know, our whole discussion here, we've been talking about the financial aspect of it, but there is a huge emotional side to your family member passing away, and you really don't want to be thinking about or concentrating on money issues around that. You want to give yourself that space and time to really grieve and go through that whole process. So, uh, as I was saying, having these conversations before someone passes away is really, really valuable for everyone. If you can manage that and just start with the conversation around wills so that you at least have clarity, and you know that your loved one's wishes are going to be taken into consideration when they do pass away.

Sarah, thank you so much for doing this research and bringing this to us. Um, might, like you say, the offset of this might be that we start having these open conversations with our loved ones without there being any underlying sort of ulterior motive that we're trying to sort of source out how much we're going to get left. And it might be a nice conversation to have with our family members so that we know where we all stand.

Sarah, thank you so much for doing this research and bringing this to us. Um, might, like you say, the offset of this might be that we start having these open conversations with our loved ones without there being any underlying sort of ulterior motive that we're trying to sort of source out how much we're going to get left. And it might be a nice conversation to have with our family members so that we know where we all stand.

Yeah, that's exactly right. It's a can feel really awkward. It can feel uncomfortable, but it's really just a conversation. And you're really trying to, um, make sure that their wishes and that their intentions are honoured, um, after they've gone. So it can be a really positive conversation if you handle it with sensitivity.

Yeah, that's exactly right. It's a can feel really awkward. It can feel uncomfortable, but it's really just a conversation. And you're really trying to, um, make sure that their wishes and that their intentions are honoured, um, after they've gone. So it can be a really positive conversation if you handle it with sensitivity.

Sarah Megginson, their personal finance expert finder. Thank you so much for your time on Fourbc afternoons.

Sarah Megginson, their personal finance expert finder. Thank you so much for your time on Fourbc afternoons.

Thank you so much.

Thank you so much.