I'd rather pay thousands on a holiday: Meet the pensioners spending the kids' inheritance

Retired school administrator Sarah Moorhouse, 64, and her husband Geoff are defying the tradition of leaving an inheritance for their children by spending their private pensions on lavish holidays. The couple, who live in the Yorkshire Dales, go on holiday four or five times a year, spending hundreds of pounds each time.

Sarah believes that "you only have one opportunity at life," and encourages others to enjoy their retirement while they can. The couple's decision to prioritize their own enjoyment over leaving an inheritance is part of a global trend dubbed "skiing," which stands for spending the kids' inheritance.

A recent report by pension provider Standard Life found that one in seven UK parents of children of all ages now plan to prioritize enjoying their money in retirement over leaving an inheritance. In the US, the number of people expecting to receive an inheritance from their parents dropped to 20% in 2023, down from 25% in 2024.

Sarah and Geoff have two adult daughters, and their daughter Poppy is thrilled that her parents are living life to the fullest. Poppy rejects the idea that she and her sister should expect an inheritance, stating that she would much rather them enjoy their retirement.

Experts argue that the shift towards skiing in the UK is driven by the disappearance of final-salary pensions, which provide guaranteed monthly payments, and the rise of defined contribution pension pots, which can run out. Retirees are opting to enjoy their remaining years with indulgences and pleasures, finding it harder to be generous with a legacy when they know their retirement income may not last as long as they need it.

However, not all retirees are as financially secure. In the UK, 16% of pensioners live in poverty, while in the US, it's 15.4%. Despite this, UK pensioners have seen their disposable income increase by more than non-pensioners over the past three decades. Some 69% of retirees in the UK have a private pension in addition to their state one.

Karen Green, a 60-year-old retiree living in Provence, France, has been very upfront with her children about her financial plans. She has no intention of leaving an inheritance, stating that she expects to spend it all on holidays and other pleasures. Karen, who tops up her private pension by still doing part-time business consultancy work, says her income is the same as when she was working full-time. She spends over £10,000 a year on holidays, including a yoga retreat in Morocco and a tour of Vietnam and Laos.

Despite the financial disparity between retirees, many are still able to maintain a similar income to when they were working. However, experts advise retirees to be upfront with their adult children about their plans, as some may have relied on the expectation of an inheritance.