I’m a parent. I’ve spent plenty of time and money giving my kids a head start in life. My eldest is nearing the end of school and one thing I plan to do soon is help him buy a home.

Should I feel guilty about this? If you read press coverage about the bank of mum and dad, you might suspect so. But when I die, my kids will get everything I own anyway. Why not help them accumulate assets and provide stable housing when they are young adults and need it?

One of the new big lenders on the block. Credit: Marija Ercegovac

The average age of receiving an inheritance in Australia is somewhere between 55 and 60 years old. We forget this. We forget that the cohort currently receiving the most inheritances are Baby Boomers, often right when they can access their super and are nearly retired.

But that’s not when most people need more money. Spending needs drop off dramatically at that age. No kids to support. No house to pay off. So dramatic is this decline in spending that most retirees don’t actually spend down their savings – they begin to, or continue to, save more of their lower income.

The bank of mum and dad is a way to fix this........

© The Age