Sarah and Geoff Moorhouse, both retired, have chosen to spend their savings on experiences rather than leaving an inheritance for their children. Sarah, 64, uses her private pension to travel frequently, stating, "you only have one opportunity at life." The couple travels four to five times a year, visiting places like Scotland and the Lake District. They recently sold their vintage sports car to purchase a modern convertible.
This trend, referred to as "skiing"—spending the kids' inheritance—reflects a shift in attitudes among retirees. A report from Standard Life indicates that 15% of UK parents prioritize enjoying their money over leaving an inheritance. In the US, the expectation of receiving an inheritance has dropped from 25% to 20% in the past year, according to Northwestern Mutual.
Poppy, one of the Moorhouses' daughters, supports her parents' decision, stating she never expected to inherit money. Mike Ambery from Standard Life attributes the trend to the decline of final-salary pensions, which provide guaranteed income, leading retirees to spend their savings while they can.
Despite the trend, 16% of pensioners in the UK live in poverty, as reported by the Joseph Rowntree Foundation. However, retirees in the UK have seen an increase in disposable income over the past three decades, according to the Institute for Fiscal Studies.
Karen Green, 60, also plans to spend her savings on experiences, warning her children that there may not be an inheritance. Living in France, she spends over £10,000 annually on holidays, including a yoga retreat and trips to Vietnam and Laos. Green maintains a steady income through part-time consultancy work and property rental.
Matthew Loveless from Northwestern Mutual emphasizes the importance of communication between retirees and their adult children regarding inheritance expectations. Sarah Moorhouse continues to plan her next holiday, expressing that she deserves to enjoy her time after a lifetime of work.