15% of UK Parents Now Prioritise Spending Over Leaving Inheritance, Standard Life Reports

A growing proportion of UK parents are choosing to spend their retirement savings on lifestyle and leisure rather than preserving wealth for their children, according to new research that highlights a shift in attitudes towards intergenerational wealth transfer.^[1]

One in seven UK parents of children of all ages (15%) now plan to prioritise enjoying their money in their retirement over leaving an inheritance, according to a March report by pension provider Standard Life.^[1] The finding comes as part of a broader trend dubbed 'skiing' - an acronym for 'spending the kids' inheritance' - which is challenging traditional assumptions about asset preservation and family succession planning.

The Skiing Phenomenon

The shift is exemplified by retirees such as Sarah Moorhouse, 64, a retired school administrator from the Yorkshire Dales, who takes holidays four or five times a year with her husband Geoff, spending hundreds of pounds each time.^[1] "We like going to Scotland," Sarah told the BBC. "We've been down to Cambridgeshire, which was lovely. We go up to the Lake District quite regularly to a holiday cottage, and we're planning to go to Norfolk."^[1]

The couple recently sold their vintage Sunbeam Alpine sports car to purchase a more modern Mazda MX-5 convertible.^[1] "I'm of an age where I'm going to friends' and acquaintances' funerals, and I think you just need to live life and enjoy it while you can, because it's a very precious commodity," Sarah said.^[1]

Her daughter Poppy supports the decision. "To me that's wild. It never even crossed my mind that I'll get money when my mum and dad die. I'd so much rather them do what they want to do," she told the BBC.^[1]

Pension Structure Driving the Shift

Mike Ambery, retirement and savings director at Standard Life, attributes the trend to structural changes in UK pension provision.^[1] The disappearance of final-salary pensions - which provide guaranteed monthly payments for life - has been replaced by defined contribution pension pots that can run out, he argues.^[1]

This shift in pension structure creates different incentives for retirees, who now face the risk of depleting their savings before death rather than having guaranteed income streams that end only upon death. The change may encourage consumption over preservation, particularly among those who prioritise lifestyle quality in their remaining years.

International Context

The phenomenon is not limited to the UK. In the United States, the number of people expecting to receive an inheritance from their parents dropped to 20% last year, down from 25% in 2024, according to a study by financial services firm Northwestern Mutual.^[1] This five percentage point decline in a single year suggests the trend may be accelerating across developed economies.

Implications for Business Succession Planning

The skiing phenomenon carries significant implications for family business succession and estate planning. While the Standard Life research covers all parents regardless of business ownership, the shift in attitudes towards wealth preservation may complicate succession planning for family-owned enterprises.

Business owners who adopt a skiing approach may prioritise extracting value from their companies during their lifetimes rather than preserving equity for transfer to the next generation. This could manifest in higher dividend distributions, asset sales, or reduced reinvestment in growth - all of which may affect the long-term viability and transferability of family businesses.

The trend also raises questions about the availability of capital for business transfers. If retirees are consuming rather than accumulating wealth, adult children may have fewer personal resources available to fund management buyouts or acquire parental business interests. This could increase reliance on external financing or force sales to third parties rather than family succession.

Wealth Management Sector Response

The shift towards spending rather than legacy preservation requires the wealth management and financial planning sectors to adapt their advice models. Traditional estate planning focused heavily on inheritance tax mitigation and wealth transfer structures. The emergence of skiing as a deliberate choice rather than an unintended outcome requires advisers to balance competing objectives: maintaining sufficient resources for lifestyle spending while retaining optionality for legacy planning.

The transition from defined benefit to defined contribution pensions also creates longevity risk - the possibility that retirees outlive their savings. This risk may moderate the skiing trend over time, as retirees who initially planned to spend freely may later need to preserve capital to fund care costs or extended retirement periods.

For financial advisers working with business-owning clients, the skiing phenomenon adds complexity to succession planning conversations. Advisers must now navigate family dynamics where parents and children may hold divergent expectations about wealth transfer, while also ensuring that business value is neither prematurely extracted nor unnecessarily preserved at the expense of owners' quality of life.