The “Great Wealth Transfer,” projected at $124 trillion, is anticipated by Millennial and Gen Z heirs as they look forward to inheriting their parents’ wealth. However, many may find themselves disappointed, as Boomers are increasingly using that wealth for their own enjoyment, particularly in travel.
A trend has emerged called “ski-ing,” which refers to the practice of spending what would be the kids’ inheritance. Recent data from Abta highlights that 82% of over-65s took a vacation in the last year, a notable increase from two years ago. The CEO of Abta attributes this rise to Boomers opting to spend money they would have saved for inheritance on experiences, especially travel.
Additionally, a report from Standard Life revealed that one in seven British parents prioritize enjoying their money in retirement over leaving an inheritance. Boomers are living longer and are generally wealthier than previous generations. As they enjoy their retirement, many feel financially secure, often mortgage-free, and are keen on making the most of their disposable income.
This trend extends beyond Britain to the U.S., where a Northwestern Mutual survey found that only 22% of baby boomers expect to leave an inheritance. Instead, many Boomers have adopted a philosophy of “dying with zero,” enjoying their wealth while they can. However, this could lead to unexpected financial challenges for younger generations, who may be counting on inheritances to secure their financial future. Over half of Gen Z and nearly 60% of Millennials are reportedly relying on inheritances for a comfortable retirement.
