Summary: Thinking of helping your kids buy their first home? Discover the potential risks to your retirement & explore smart strategies like the First home super saver scheme
Want to help your kids buy their first home? Learn how it could pose a risk to your retirement plans and the smarter ways to help.
This week on the Friends With Money podcast, Michelle Baltazar speaks with Aware Super's Kate Rolfe about new research showing most parents and grandparents are willing to help younger family members buy a first home, often by gifting cash, reducing their mortgages or offering low to no-interest loans, but how their good intentions could potentially put their retirement savings at risk.
They discuss how giving financial support without proper planning can affect tax outcomes and Centrelink age pension eligibility, including potential consequences such as losing access to their benefits for years.
Rolfe recommends getting professional financial advice before money changes hands, considering whether to gift the funds or to structure it as a loan, and weighing lump sum versus drawdown payments.
01:09 How families can help
02:45 Retirement and pension risks
05:26 Tax advice and structuring gifts
06:43 First home super saver explained
08:32 Lump sum vs drawdown
11:09 Where to start
Links: First home super savers scheme
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Disclaimer
“To find out more from Aware Super, go to aware.com.au/member/what-we-offer
General advice only. Consider your objectives, financial situation or needs, which have not been accounted for in this information, and read the relevant PDS and TMD before deciding to acquire, or continue to hold, any financial product.
Consider if Aware Super is right for you and access the PDS and TMD on their website, aware.com.au/firsthomebuyer
Advice provided by Aware Financial Services Australia Limited (ABN 86 003 742 756, AFSL 238430), wholly owned by Aware Super.
Aware Super’s research involved a national online survey of 1,094 Australians aged 45 and over who indicated they were open to financially supporting younger family members. Fieldwork was completed in December 2025. All research was carried out in accordance with ISO 20252:2019 and ISO 27001:2013 quality and data-security standards.”
