Moneyproof Retirement

Reporter: Graeme Butler

Having the kids live at home may been the recipe for a hit TV show, but in reality for parents it can be a recipe for financial disaster. Glenn and Karen Blakely were looking forward to travelling the world in their golden years. But with adult children still living at home, their empty nest is full.

Like many young people, 20-year-old Ben still lives with his parents. An incredible thirty seven percent of Gen Y's still live with their parents.

Of 18 - 21 year olds a whopping 67 percent are still in the family home

By the time they've turnd 25 almost half have left the nest

But by age 30 there's still 13 percent relying on mum or dad for a place to sleep

"They're stopping you actually being able to make investments in a good timely way will actually give you incoming retirement" Neale Prior is the West Australian's personal finance editor. He says having kids-at-home can be costly. "You need to work out enough money to actually cover the costs of them being there, but also enough where they can actually set themselves up to be independent"

Supporting your kids can be leaving you in the lurch Having a Gen-Y live at home rent-free for five years will cost YOU 25 thousand dollars. Ten years, and you can say goodbye to 56 thousand dollars from your retirment funds. And 15 years well you'll be almost 100 000 dollars out of pocket.

"We're seeing more people access their superannunation to bail out their kids and equally kids staying at good jobs or good paying jobs almost bluding off the parents" Finance guru Nick Bruining says its time for kids to start contributing. "I think that once your child has perhaps finished their stidues and they are in a good well paying job there is nothing wrong with asking them to contribute to the cost of running the household. there are all types of models out there. The one I like is 20 percent of their gross pay perhaps contributing to running the household."

Having the kids chip-in, is just the first step. Eliminating debts and consolidating your super will ease the stress of going into retirement. "One of the other costs of multiple superannuation funds has its impact on how much you walk away with. Pick a good fund, roll all your money into the one fund so you know exactly what's going on, but more importantly you will cut down on those fees and charges"

And Nick's final tip? If you need some help, then just ask. "One of the great untapped resources is centrelinks financial information service. They're basically financial planners that work free of charge within centrelink. anyone approaching retirement can go and talk to a fiancial service officer and find out what options exist for them"

As for the Blakely's, having Ben at home, may be costly, but good value. "Its nice to have the family all together still and they all muck in and have a good time normally"