Across the UK and the US, a growing number of retirees are choosing to spend their life savings on travel and experiences rather than preserving them as an inheritance for their children. This shift, often referred to as “skiing”—spending the kids’ inheritance—reflects changing attitudes toward retirement, family expectations, and financial security in later life.
The Rise of “Skiing”: Spending Now Instead of Saving for Later
Sarah and Geoff Moorhouse, a retired couple from the Yorkshire Dales, exemplify this trend. With two adult daughters and a comfortable private pension, they have embraced the philosophy of enjoying their retirement fully. Instead of hoarding wealth for their children, they travel frequently, from the Lake District to Norfolk, and even upgraded their vintage sports car to a modern convertible to enhance their lifestyle.
Sarah’s perspective is clear: “You only have one opportunity at life,” she says, highlighting the urgency many retirees feel to make the most of their time. Their daughter Poppy supports this approach, rejecting the traditional expectation of an inheritance and preferring to see her parents happy and active.
Why Are More Retirees Choosing to Spend Rather Than Save?
Experts point to several reasons behind this phenomenon. In the UK, the decline of final-salary pensions—which guarantee a steady income for life—has left many retirees reliant on defined contribution pension pots. These pots can be depleted, making it riskier to save large sums for an inheritance.
Mike Ambery, a retirement expert at Standard Life, explains that retirees are more likely to spend their savings when they cannot be sure of a lifelong income. This uncertainty encourages them to prioritize enjoying their money while they can, rather than holding it back for heirs.
There is also a psychological element: after decades of working, many retirees feel entitled to indulge themselves. Life is seen as a precious commodity, especially as friends and peers begin to pass away. This mindset fuels the desire to travel, take up new hobbies, and savor experiences.
Financial Realities and Social Shifts in Retirement Planning
While the trend is growing among those with sufficient means, it is important to recognize the uneven financial landscape facing retirees. In the UK, about 16% of pensioners live in poverty, and the figure is similar in the US at around 15%. These retirees have little choice but to be frugal and often cannot contemplate spending their savings freely.
However, for the majority who have private pensions alongside state benefits, disposable income has increased over recent decades. This has enabled more retirees to consider spending on lifestyle rather than leaving a financial legacy.
Karen Green, a semi-retired consultant living in France, openly tells her children she does not expect to leave them an inheritance because she plans to spend her savings on travel and experiences. Her approach underscores a broader cultural shift where adult children increasingly accept that they may not receive a financial windfall from their parents.
The Impact on Family Dynamics and Retirement Expectations
This change in inheritance expectations has significant implications for family relationships. Financial experts advise retirees to communicate clearly with their adult children about their plans. This transparency helps manage expectations and reduces potential conflicts over money after death.
Matthew Loveless, a financial advisor in Ohio, emphasizes the importance of honesty in these conversations. Many adult children still assume they will inherit wealth, which can lead to disappointment or misunderstandings if parents choose to spend their savings instead.
From the perspective of the younger generation, the shift is often welcomed. Poppy Moorhouse’s attitude reflects a growing acceptance that parents’ happiness and quality of life should take precedence over future financial legacies.
What This Means for the Future of Retirement and Wealth Transfer
The “skiing” trend signals a broader transformation in how wealth is managed and perceived across generations. As pension systems evolve and life expectancy increases, retirees are recalibrating their priorities. For many, the promise of inheritance is less certain or less important than living well in the present.
This could have long-term effects on wealth distribution and economic behavior. Reduced inheritance might impact younger generations’ ability to buy homes or invest, shifting economic pressures and opportunities.
Meanwhile, the emphasis on spending in retirement could boost sectors like travel, leisure, and wellness, as retirees seek meaningful experiences over material legacies.
Ultimately, the choice to “ski” reflects a personal reckoning with mortality, financial security, and family values. It challenges traditional norms and invites a more open dialogue about what it means to retire well and leave a legacy—whether in memories or money.
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For more context, see related Peack News coverage and explainers linked below.