Seniors are getting a new incentive to spend big during their retirement. Normally, it’s been an age-old custom for parents, grandparents, and other aging relatives to pass down their remaining wealth to their kids when they die. However, at least in Australia, a new study finds older adults are looking to spend every last dollar before they go. Even more surprising, many younger adults say they’re fine not receiving an inheritance.
Researchers at the University of South Australia say their findings show a changing mindset among younger generations; with many believing no one owes them anything – even their families. Study authors also argue it gives lawmakers incentive to reconsider policies regarding inheritance and estate taxes.
In Australia, lawmakers abolished taxes on money that a family member passes on to their relatives 40 years ago. In that country, an inheritance is the only major form of income that is still tax-free. However, with more young adults saying that their parents should live it up in retirement, researchers say why not bring the inheritance tax back for the fewer cases of passing down wealth?
The study appears in the Australian Journal of Political Science.