• Me bank

    Me bank

    A low cost banking
    by Vision Super

    Read more

  • Our people,  our Vision

    Our people,
    our Vision

    We're meeting our
    members and
    sharing their

    Read more

  • Climate  Action 100+

    Action 100+

    We're proud to be one of the global investors
    engaging the world’s largest emitting
    companies to act on climate change.

    Read more

  • A better insurance experience for you

    A better insurance
    experience for you

    From 1 January 2018, your insurance with us
    is moving to MLC Life Insurance, with premiums
    locked in for the next three years.

    Read more

  • How to be a  super woman

    How to be a
    super woman

    Vision Super member, Melinda
    tells us how she is taking
    control of her financial future.

    Read more

When we think of all the things that could get in the way of a quality retirement one factor is often overlooked: Our children. Here’s a few tips from ME Bank to ensure your retirement isn’t at risk.


Retirement holds plenty of promise, but along with concerns over personal health, the need to care for aged parents or just manage the cost of living, there is another ‘X’ factor that can derail the best laid plans – and that’s our kids.

It turns out plenty of young adults are taking a leaf from The Big Bang Theory’s Howard Walowitz by settling into the parental nest for the long haul. In fact, government figures show around one in three young adults aged 18-34 still live in the family home[1].

Sure, it’s not all bad having an adult child at home. After all, there’s always someone to water the pot plants when you head off on that round-the-world vacation.

But here’s the rub.

When adult children are finally ready to fly the coup, chances are they’ll need a financial helping hand to do so. And we’re not talking a few fivers to tip the furniture removalist.

One in four receive financial support from family

Research by ME conducted in 2016 revealed that 26% of first home buyers had received financial assistance from a family member to buy their own home. And the sums involved can be substantial with an average of $42,000 being loaned or gifted over the last five years.

With this sort of money involved it’s not surprising retirement plans can be derailed. One in four (28%) of those who have helped a family member into their first home say it has impacted their level of comfort in retirement.

Protect your financial wellbeing

Yes, rising property values are making it hard for younger Australians to buy their first home. But there are steps family members can take to lend a hand without jeopardising their own financial wellbeing.

1. Talk to experts

Consult a financial adviser or lawyer, or access free services such as Centrelink’s Financial Information Service before making the decision the gift or loan funds to family members. Gifting cash in particular could impact age pension entitlements under the assets test. Agreeing to act as guarantor could put you at risk of becoming responsible for your child’s loan if they cannot keep up the repayments.

2. Keep your money working

Over the last five years 24% of family members who have loaned money to a first home buyer have charging interest on the loan. It can be a way to teach valuable lessons about money management while ensuring your cash earns an ongoing return.

3. Formalise agreements

Money can have a way of souring relationships. Protect your investment in your child’s first home by having an agreement drawn up that details whether you will be repaid – and when.

Importantly, do some serious soul searching about your adult child’s financial habits.  If you are confident he or she can handle a home loan offering fiscal support may not be such a bad thing. But if you have any niggling doubts be prepared to listen to your inner voice.

Members Equity Bank Limited ABN 56 070 887 679. 

[1] Australian Social Trends - ABS




Latest videos

  • [HD] Low cost/sustainable super option from Vision Super
  • [HD] Unlike the banks, Vision Super is working for you
  • Vision Super Update
  • Vision Super Update
  • Vision Super Update
  • [HD] Vision Super's 2018 AGM
  • World Vision Super Update
  • Vision Super Update
  • Vision Super Update
  • Vision Super Fund Live Stream

Follow us on social media today

Twitter feed

Vision Super is divesting from thermal coal, tar sands and tobacco across all of our investment options. Read more… https://t.co/Hb1ENcfb4b
30 November 2018
We're hosting our AGM today. If you haven't registered to attend, or watch the live stream, just click here:… https://t.co/ZSWHVTSS5q
28 November 2018