One in seven UK parents of children of all ages, representing 15%, now intend to prioritise enjoying their money during retirement rather than leaving an inheritance, a report by pension provider Standard Life indicates. This trend, known as "skiing" (spending the kids' inheritance), is challenging the traditional expectation of assets being passed down to the next generation.
Sarah Moorhouse, 64, and her husband Geoff from the Yorkshire Dales, are among those opting to spend their private pension on travel and experiences, taking four or five holidays annually. Karen Green, 60, who lives in Provence, France, also plans to spend her money, informing her children that a legacy is unlikely.
Mike Ambery, retirement and savings director at Standard Life, suggests that the shift towards "skiing" in the UK is influenced by the decline of final-salary pensions, which provided guaranteed lifetime payments. He notes that it is easier to be generous with a legacy when retirement income is secure. Additionally, pensioners may simply wish to enjoy themselves after a working life.
In the US, the proportion of people expecting an inheritance from their parents decreased from 25% in 2024 to 20% last year, according to a Northwestern Mutual study. Matthew Loveless, a vice president at Northwestern Mutual, advises retirees to communicate openly with their adult children, particularly those who might be relying on an expected inheritance.