David Koch, the economic director at Compare the Market, has ignited a fierce national debate after declaring that baby boomers should feel no obligation to leave inheritance to their children.
The Controversial Stance
In comments that have drawn widespread criticism, Koch urged fellow baby boomers to prioritise their own retirement happiness over passing wealth to the next generation. "Personally I don't think you owe your kids any sort of inheritance," Koch stated, adding that parents should "take happiness in buckets, until you kick the bucket."
The media personality argued that parents' primary obligations should focus on providing a good education, stable family life and proper upbringing rather than financial legacies. He specifically warned against compromising retirement quality to help children financially, particularly given modern superannuation benefits.
Housing Experts Fight Back
Michael Fotheringham of the Australian Housing and Urban Research Institute delivered a scathing assessment of Koch's position, describing it as "silly" and "not a thoughtful contribution" to discussions about housing affordability.
"It ignores boomers as a generation which bought houses at far lower prices over anything experienced by later generations when compared to wage earnings," Fotheringham told Daily Mail. "The boomer generation benefited greatly from buying property which was affordable."
Fotheringham emphasised that most people with wealth naturally want to share it with loved ones, noting "they can't take it with them." He suggested Koch was merely attempting to stir controversy rather than making a genuine contribution to the intergenerational wealth discussion.
The Superannuation Defence
Koch based his controversial advice on Australia's compulsory superannuation system, which has grown significantly since its introduction. He noted that while baby boomers began with a "miserly 3%" contribution rate, younger generations benefit from 12% contributions throughout their working lives.
"Young people today are going to benefit from contribution rates now set at 12% their entire working life," Koch argued. "If your kids have good jobs and keep working, they could retire with triple the amount you have."
However, this calculation faced immediate challenge from housing equity advocates who questioned its relevance amid soaring property prices.
Reality Check on Housing Costs
Social media activist Jordan van den Lamb, known widely as 'Purple Pingers', dismissed Koch's superannuation argument as "out of touch with reality." He highlighted the critical flaw in comparing retirement savings to housing costs.
"I'm not sure if he knows how inflation works," van den Lamb stated. "More super compared to house prices being 20 times, 30 times, 40 times, 50 times higher - it's not a great argument."
The activist expressed concern about Koch's influential platform, noting his comments could normalise wealth hoarding that disadvantages younger generations. "Children shouldn't have to rely on their parents to live but unfortunately that is the way it is," he conceded.
The Stark Property Reality
Recent data underscores the generational divide in housing affordability. The typical Australian home now costs over 10 times the average full-time wage, with median capital city prices hitting $1.091 million.
PropTrack figures reveal how dramatically the property landscape has shifted:
- Sydney's 1990 median price of $187,000 equals about $447,300 today
- The 2000 median of $285,000 translates to roughly $544,000 in 2025 dollars
- Even 2010's average home cost of $600,000 equals around $874,300 after inflation
This data illustrates the enormous advantage previous generations enjoyed in property acquisition, making Koch's inheritance comments particularly provocative for younger Australians struggling to enter the housing market.
The debate continues to rage across social media and news platforms, highlighting the deep generational divides in wealth accumulation and housing opportunity in modern Australia.
