Key facts
- UK pensioners are increasingly choosing to spend their retirement funds on holidays and experiences rather than leaving an inheritance.
- The trend, known as 'skiing' (spending the kids' inheritance), is driven by factors like the decline of final-salary pensions.
- 15% of UK parents now plan to prioritize enjoying their retirement money over leaving an inheritance, according to Standard Life.
- US figures show a drop in the number of people expecting an inheritance from their parents.
- Retirees like Sarah and Geoff Moorhouse and Karen Green are actively spending on travel and leisure.
- Adult children, such as Poppy Moorhouse, are supportive of their parents enjoying their retirement funds.
A growing number of retirees in the UK are choosing to spend their private pension funds on travel and experiences rather than saving them for their children, a phenomenon dubbed 'skiing' or 'spending the kids' inheritance'. This trend challenges the traditional expectation that assets will be passed down to the next generation.
Sarah and Geoff Moorhouse, a retired couple from the Yorkshire Dales, exemplify this approach. Sarah, 64, stated her intention to use her private pension for travel and leisure activities, emphasizing the importance of enjoying life. The couple takes holidays four to five times a year and recently replaced a vintage car with a more modern convertible to enhance their experiences.
According to a March report by pension provider Standard Life, 15% of UK parents now plan to prioritize enjoying their money in retirement over leaving an inheritance. This sentiment is echoed in the US, where a study by Northwestern Mutual found that the number of people expecting an inheritance from their parents dropped to 20% last year, down from 25% in 2024.
Poppy Moorhouse, one of Sarah and Geoff's adult daughters, expressed her full support for her parents' decision, stating that the idea of expecting an inheritance is 'wild' and that she would much rather they enjoy their lives. Her sister shares this view.
Mike Ambery, retirement and savings director at Standard Life, suggests that the shift away from guaranteed final-salary pensions towards defined contribution pension pots, which can be depleted, may make it easier for retirees to spend their funds. He also noted that many pensioners simply wish to enjoy themselves after a lifetime of work.
Karen Green, 60, has also been upfront with her children about the likelihood of no inheritance, as she intends to spend all her funds. Living in the south of France for the past 11 years, Green spends more than £10,000 annually on holidays, including yoga retreats and tours of Southeast Asia. She supplements her private pension with business consultancy work and rental income.
Matthew Loveless, a vice president at Northwestern Mutual, advises retirees to communicate openly with their adult children about inheritance plans, especially if those children might be relying on such funds.