Photo: Siobhan Calafiore
Moving out of home between the ages of 21 and 24 leads to better wealth and income in adulthood, according to a recent survey.
The University of Melbourne’s Household, Income and Labour Dynamics in Australia (HILDA) Survey, released on 15 July, has found young adults who moved out between these particular ages were wealthier later in life than those who remained at home.
Those who moved out before 21 or after 24 had a lower income in adulthood, while those who moved out before the age of 18 were the worst off in terms of future prospects.
Report author Associate Professor Roger Wilkins says the survey’s findings are a vital tool for researchers and policymakers who examine and construct the social and economic direction for Australia.
He says the survey, which takes place each year using the same database of participants, helps creates a “moving picture” of how lives were changing in Australia.
He took to Reddit to answer the public’s questions over the report.
Surprising findings
Vicki Mihailidis, 44, is surprised by the findings of the survey. She lived at the family home until she was married at 27.
“It was never encouraged to move out of home,” she says. “I guess it was more of a cultural thing.”
Having worked in childcare since she was 21, Mihailidis doesn’t believe moving out of home any earlier would have increased her wealth or income.
“I have no regrets about it, I wouldn’t change anything,” she says. “I had saved a lot more money [by living at home] and when I moved out I had money behind me rather than a big mortgage.”
“My friends and I have spoken about how moving out of home earlier might lead to more responsibility and independence but I haven’t found that I have lacked that in my own experience.”
Yet with the unemployment rate at 6 per cent and housing and rent prices on the rise it is more and more difficult for young people to live out of home.
Psychology honours student Maxine Gross, 22, says she wants to move out of home but has just quit her job to concentrate on her studies.
She says many of her classmates are in a similar position.
“I would like to have independence and just have some autonomy from my parents, but at the same time I can’t afford it because I’m studying full time.”
Since 2001, more than 17,000 Australians have been recruited to undertake the survey annually, which had a 96 per cent response rate. Participants are interviewed on topics ranging from income, health and jobs to life partners and even neighbours.
Other interesting findings include Australians living in small towns of less than 1000 residents were happier than those living in major cities and couples became less satisfied with their relationship the longer the duration.
