While many parents may moan about how long their kids are taking to move out, the survey reveals that 23 is the average age at which offspring become financially independent.
That’s only a two-year difference compared to their parents, who on average achieved financial independence at the age of 21.
Nevertheless, whatever age you are when you leave home, TAL Group CEO Jim Minto stresses that financial protection is crucial.
“Leaving the protection and comfort of the family home can be both exciting and daunting. It is a rite of passage. Ensuring you are financially protected makes the transition much easier.”
“A crucial part of being financially 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.”
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The survey also found that significantly fewer children are leaving their home before they turn 18, and that only three percent of parents expected their children to do so.
While kids are not, on average, leaving home much later than they used to, their living arrangements once they leave the nest are significantly different. According to the Australian Bureau of Statistics (ABS), more than 60% of 23-year-olds in 1976 lived with a partner, with many of these having children. A generation later, though, in 2011, the proportion of 23-year-olds living with a partner had plummeted to just over 20%. We’re striking out now – but on our own.