The findings showed that a majority of Millennials (51 per cent) believed they would need to support extended family members in their retirement, and over a third (32 per cent) predict they will be financially supporting elderly parents on top of 22 per cent supporting their children.

Additionally, around 43 per cent of Australians saw themselves using their retirement funds to help their children (22 per cent), elderly parents (20 per cent), siblings (15 per cent), and even grandchildren (10 per cent) while supporting their own retirement.

The research also found that one in five Millennials were not confident in their ability to support dependents in retirement. For Baby Boomers and Generation X, who are closer to retirement, almost half (42 per cent) lacked confidence.

Matt Games, chief executive of Findex, said financially supporting dependents in retirement tends to be a hidden cost.

“We have clients coming to us with their retirement goals and expected expenditure, and often this excludes accounting for supporting dependents,” he said.

“While the ASFA Retirement Standard outlines $73,011 per annum for couples and $51,805 per annum for singles to live comfortably in retirement, it’s crucial to note these figures do not factor in having to support dependents.

“It is vital for Australians to not only have a strong understanding of their own financial position and potential spending in retirement but to also engage, early on in transparent conversations with their own parents and older kids, to understand how their wider family unit will require monetary support so they can navigate the potential pressures of the ‘Generational Squeeze’.”

The research also found that although Australians know what they want in their later years, their retirement reality does not currently match their aspirations.

Of those surveyed, the main retirement concerns were running out of money (54 per cent), physical and mental deterioration (50 per cent), and unexpected expenses (44 per cent).

Only one in four Gen X and Baby Boomers believed they would retire at their preferred age, with 35 per cent believing it is unlikely they would be able to retire and afford to live comfortably until the average life expectancy age.

Two-thirds of Gen Z believe they will be able to retire at their desired age, closely followed by Millennials (69 per cent), pointing to “concern creep” becoming more apparent for cohorts closer to the retirement stage of life where the financial realities set in.

There were also generational differences in how each cohort approached ensured they could achieve a comfortable retirement.

For Generation X and Baby Boomers looking to ensure financial security for their pending retirement, lifestyle sacrifice was the major strategy. Close to half (46 per cent) noted they would consider postponing retirement and working beyond the average retirement age of 65 to boost savings, 34 per cent would scale back on big-ticket purchases, and 24 per cent would consider downsizing their primary residence earlier in life.

Millennials took a more proactive approach, turning to wealth generation to fund retirement through additional income streams (47 per cent) or even taking on a second job (24 per cent). This cohort also acknowledged the advantage of professional financial advice, with close to half (42 per cent) noting a wealth adviser would be strategic in helping ensure a comfortable retirement.

Gen Z looked to future proofing and making big life decision changes early that would likely lead to a lower cost of retirement, including 14 per cent opting not to have children and 27 per cent opting to have fewer children.