Australians are living longer – and for many, with financial security. Decades of diligent saving and investment; superannuation growth; and booming property values have helped build solid nest eggs. However, despite this financial security, many older Australians face a quieter and potentially devastating health threat: Loneliness.
It is a poignant irony. Just as our parents and grandparents reach the stage where personal companionship and connection matter most, many are becoming increasingly socially and emotionally isolated. At the time when older Australians most value and need socialisation and community engagement, many are experiencing loneliness – despite the wealth they have accumulated. According to the World Health Organisation (WHO), more older women than men live alone, a major contributing factor to loneliness – furthermore, social isolation and loneliness are widespread, with around 16% of people globally – one in six – experiencing loneliness.
Women often outlive their partners, and many inherit multiple times during their lives however continue to live frugally and sometimes with limited social engagement and reduced social confidence.
As my late Scottish grandfather used to say, ‘One generation sacrifices to build the wealth, so the next may spend it.’ According to Grant Thornton Australia (September, 2024) 70% of families lose their inherited wealth by the second generation, and 90% by the third. Whilst this may or may not be true for all generations, we do know that many older Australians are often reluctant to use their savings during retirement – memories of having very little and struggling are still highly vivid and influence their spending habits and social engagement into their older age. Or they may not have the confidence to socialise – as we age friendship circles can diminish, and travel and events can be challenging without a trusted companion.
In Australia, the intergenerational handover of wealth – dubbed ‘The Great Wealth Transfer’ – is underway – both via estate administration and inter vivos gifting and intergenerational financial support. It offers opportunity but also raises tough questions: Should our ageing parents use more of their wealth to enrich their own lives? Should future beneficiaries be preparing for (and expecting) inheritance – or empowering older Australians to feel confident to enjoy their own financial freedom? For many older Australians their savings will outlive them, meaning significant wealth will pass to future generations – to most likely spend. Sadly, too many continue to live with a ‘scarcity mindset’ – fearing their savings may not be sufficient, despite owning substantial assets such as the family home or a sizable superannuation fund. The consequence? A potentially restricted quality of life and impacted health and wellbeing, and deeper feelings of isolation and loneliness.
Family dynamics add to the complexity. Blended families, second marriages, and international living arrangements can make navigating wellbeing and wealth more challenging and social isolation more likely. ‘Inheritance entitlement syndrome’ has even begun to surface, with tensions and family conflicts arising regarding the quantum and timing of wealth distribution. Yet despite the challenges there is opportunity. With Australia’s population ageing and family structures diversifying, there has never been a more critical time to have open, honest intergenerational conversations about Wealth, Legacy, and Wellbeing – conversations that may span time zones and continents.
Such conversations can provide the opportunity to discuss matters such as: Understanding your parents’ wishes and preferences for their wealth and wellbeing; What does wealth mean to different generations; Who will take the lead on certain responsibilities and which legal documents – such as Power of Attorney or medical decision-making authorities – need to be updated; What might the family’s legacy look like. It may also be an opportunity to discuss whether an independent, trusted companion and lifestyle support may be appropriate and of value for your parents – an independent intergenerational ‘lynch-pin’.
Discerning Concierge offers genuine companionship and premium services that enhance day-to-day living. Connecting your parents with a trusted, professional companion ensures they can continue to enjoy life with confidence and peace of mind.
Contact us for a confidential consultation to discuss how Discerning Concierge membership can support your parents’ wellbeing.