Myth busted: when young Australians leave the nest

A survey has bucked the perception that young Australians are staying at home substantially longer than their parents did.

The findings reveal offspring fly the coup and become financially independent at an average age of 23.

Surprisingly, this compares to their parents who left home only two years earlier at an average age of 21, according to the survey conducted by Australia’s largest life insurer TAL as part of its support for MoneySmark Week this week.

The survey also reveals this meets parents’ expectations: they say their children should leave home and become financially independent at about that age (age 22.7 years).

TAL Group CEO Jim Minto said: “Leaving the protection and comfort of the family home can be both exciting and daunting. It is a rite of passage. Ensuring you are financial protected makes the transition much easier.

“A crucial part of being financial independent is ensuring you can meet your obligations and commitments if for some reason you are unable to earn your income for a period. Income protection is a key form of life insurance for young people and moving out of home is a perfect time to ensure you have financial protection.”

While highlighting that the 30-something “failure to launch” cliché is an exception rather than the rule for those flying the coup, the survey also reveals far fewer children are leaving home before the age of 18.

Only three per cent of parents expect their children to leave home before 18, compared with 13% of parents saying they had moved out by this age.

Fourteen per cent of parents shied away from putting an age on the question – instead saying it should be dependent on getting a job or completing their education.

A number of parents did, however, seem resigned to having their children at home for the long term, with 8% saying their children “would probably never leave home”. In some cases there may be children with special needs or medical conditions.

Mr Minto said: “Looking at life it is clear that a person’s most important asset is their ability to earn an income because that is what sustains our lives.

“But what many young people do not fully appreciate is the impacts and consequences of what can happen when an income unexpectedly stops due to injury or illness. Youngsters will often insure their mobile phones but not themselves.”

TAL supports MoneySmart Week to improve financial literacy and because it wants to help Australians build, grow and protect the life they have created and the one they imagine for the future.