For generations, building and preserving wealth to pass down to children was considered the ultimate financial goal for families. However, a growing faction of today's Rentner (retirees) generation is rewriting the rulebook, opting to fund their own bucket lists rather than a guaranteed inheritance.
What is the 'SKIing' Trend?
In the UK and the US, this cultural shift has even earned a catchy acronym: "SKIing", which stands for "Spending the Kids’ Inheritance."
Rather than hoarding wealth until the end of life, many financially secure older adults are pouring their savings into frequent vacations, new hobbies, and upgraded lifestyles. For instance, reports highlight retirees taking multiple international trips a year, upgrading vehicles, and enjoying early retirement to the fullest.
The rationale is deeply personal. Confronted with the fragility of life and the loss of peers, many older adults view their accumulated wealth as a resource for active living rather than a legacy fund. Surprisingly, many children support the shift, stating they prefer to see their parents enjoy the fruits of their lifetime labor.
The Global Divide: US, UK, and Germany
Surveys underscore that this is more than just an isolated lifestyle choice.
- Anglo-Saxon Countries: Data from providers like Standard Life and Northwestern Mutual show that a significant portion of parents now prioritize personal wellbeing in retirement over leaving an estate, with expectations of receiving an inheritance steadily declining.
- The German Perspective: The mindset looks slightly different in Germany. A recent survey by Allianz Baufinanzierung revealed that only about a quarter of surveyed property owners over 60 intend to exhaust their wealth themselves. The vast majority still aim to pass assets down or have already begun transferring wealth early, often driven by a cautious eye on potential long-term care costs.
What It Means for Families
While a notable 15 to 16 percent of older adults in the UK and US live in poverty—leaving no room for luxury spending—the trend highlights a clear psychological evolution among affluent retirees.
Money is increasingly viewed as an active tool for post-work enjoyment rather than a static inheritance. For the next generation, it ultimately means smaller bank accounts left behind, but healthier, happier parents who chose to live life on their own terms.
