An increasing number of retired parents are planning to spend their life savings before they die instead of leaving money behind for their children.

As young people struggle with skyrocketing housing prices and a tightening job market, their parents are opting to for holidays and spending sprees.

While only 3 percent of Australians over the age of 50 plan to pass on all of their savings to their children, 10 per cent want to blow it all on themselves.

An increasing number of retired parents (pictured is a stock image) are planning to spend their life savings before they die instead of leaving money behind for their children

A massive 41 per cent plan to spend most of their savings on themselves, while the remaining 46 per cent will preserve some and spend some.

Only 26 per cent say it is 'very important' to leave the family home to children or the estate.

Even fewer, 23 per cent, gave the same answer when asked about passing on other assets and investments.

The findings come from a survey of 5800 seniors conducted as part of the 2017 National Seniors Social Survey.

As young people struggle with skyrocketing housing prices and a tightening job market, their parents are opting to for holidays and spending sprees (pictured is a stock image)

Meanwhile a report commissioned by Mercer, a wealth consultancy, indicates 60 per cent of retirees do not have enough savings to last them the rest of their lives.

In July the Gratton Institute found young people are struggling to buy homes, with many likely to be renting forever, The Daily Telegraph reported.

Only 45 per cent of 25 to 34-year-olds own a home, compared to 58 per cent in 1986.

'What these numbers show is that there's clearly a problem linked to housing affordability,' said researcher Brendan Coates.

Only 45 per cent of 25 to 34-year-olds own a home, compared to 58 per cent in 1986, and many will struggle to buy even if they give up smashed avo on toast (pictured, stock image)

'It shows we have a really big problem in ensuring the younger generations can afford to purchase a home.'

Australian parents seem to be taking a cue from famous high earners from around the world.

Bill Gates plans to leave his entire fortune to charity, a move supported by his children.

Celebrity chef Gordon Ramsay has made a similar statement, leaving his four kids nothing but a 25 per cent deposit for a home.

English musician Sting has six children, but has told them they won't be getting their hands on any of his wealth, estimated at $300 million.