“Parents very often are going to want to do whatever they can in order to help their kids, for example get on the housing ladder.
“I think for a lot of parents they can actually do both … but it has to be included in the [financial] plan.”
Hartmann said a lot of retirement planning all comes to the gap above New Zealand Superannuation.
“NZ Super is a foundation … but usually, for many people, they have a gap above that,” he said.
“Before someone is trying to help the next generation, they also need to take into account how they’re going to fill that gap.”
Hartmann said for parents lending money to children for a first home, there needed to be clarity on whether it was a loan or a gift.
“That clarity goes right all the way to, if it is a loan, to actually draw up a loan agreement, get legal advice so everybody’s clear on what will happen in terms of repayments,” he said.
The report found that while 88% of people still see owning a home as a core life goal, 42% feel it isn’t attainable today.
Meanwhile, more than three-quarters (78%) of Kiwis said they expect to wait at least three years before they can afford to buy a home.
Instead, more New Zealanders believe the “Kiwi Dream” is to be financially independent (54%) rather than owning a home (44%).
“Although housing affordability has in fact improved over recent years, concern over higher interest rates, new-build quality and job security is impacting the pursuit of home ownership,” Sandy Foster, chair of the New Zealand Housing Foundation, said.
“In the current market, investing in the family home as a pathway to long-term financial stability no longer seems as assured of success as in earlier years.”
Foster said the rise of online share trading platforms was providing easily accessible opportunities for alternative ways for Kiwis to invest and build a sound financial future.