Retirees Spending Inheritance: Those Who Spend Hundreds of Dollars on Travel

Many individuals who want to live life to the fullest during retirement prioritize their spending over leaving an inheritance. Sarah Moorhouse and her husband Geoff are one of the concrete examples of this mindset. 64-year-old Sarah, a retired school administrator, enjoys life by choosing to travel with her husband. The Moorhouse couple enjoys life by taking their annual vacations four to five times a year, spending hundreds of pounds on each trip. Sarah emphasizes the importance of their travels by saying, "Life is an opportunity, and I think we should make the most of it." The couple lives in the Yorkshire Dales and regularly travels to Scotland, Cambridgeshire, and the Lake District. They recently mentioned selling a vintage sports car and buying a more modern two-seater sports car. Sarah states, "As we get older, we attend our friends' funerals, and therefore I think we need to live life and enjoy it." This approach reveals a financial lifestyle trend known as "skiing" (spending inheritance), which is becoming increasingly popular worldwide. A study conducted in England shows that parents now prefer to spend their money during retirement rather than leaving an inheritance to their children. Many people are giving up their savings to be happy in retirement. For example, according to research by Standard Life, one in seven parents in England finds it more important to spend their money and have fun in retirement than to leave an inheritance to their children. Karen Green is another retiree with this understanding. 60-year-old Green is quite open about leaving an inheritance for her children, saying, "I don't plan to leave an inheritance; I will spend the money." Living in the south of France, Green spends over £10,000 on her annual vacations. In addition to her vacation plans, she increases her income by doing business consulting. During retirement, individuals' lifestyles and spending habits change. Many retirees are moving away from the idea of leaving an inheritance and are increasing their spending to make their current lives more enjoyable. This situation also reflects how values in society and individuals' life philosophies have changed.

Source: BBC Business