- Published
Happily retired, Sarah Moorhouse is using her private pension "to go places and do nice things at the drop of a hat".
asserted
Moorhouse → publish → hat
While other retirees with a decent monthly pension income may choose to build up an inheritance for their children, Sarah, 64, and her husband Geoff are opting to spend their money on living life to the max.
uncertain
Sarah → choose → max
"We like going to Scotland," says Sarah, a retired school administrator.
asserted
Sarah → go → Scotland
We go up to the Lake District quite regularly to a holiday cottage, and we're planning to go to Norfolk."
asserted
we → go → Norfolk
The couple, who live in the Yorkshire Dales, go on holiday four or five times a year, spending hundreds of pounds each time because, in Sarah's view, "you only have one opportunity at life".
asserted
you → live → life
They did recently sell their vintage Sunbeam Alpine sports car.
asserted
They → sell → car
But only so they could replace it with a more modern, sporty two-seater convertible, a Mazda MX-5
uncertain
they → replace → convertible
"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," says Sarah.
asserted
Sarah → go → it
Sarah and Geoff are part of a global personal finance phenomenon that has been dubbed "skiing", which stands for spending the kids' inheritance.
asserted
which → dub → inheritance
It is challenging the notion that assets will get handed down to the next generation.
asserted
assets → challenge → generation
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, external by pension provider Standard Life.
uncertain
parents → plan → Life
And in the US, the number of people expecting to get an inheritance from their parents dropped to 20% last year, from 25% in 2024, according to a study, external by financial services firm Northwestern Mutual.
uncertain
number → expect → Mutual
'Wild' to expect an inheritance
Sarah and Geoff have two adult daughters.
asserted
Sarah → expect → daughters
One of them, Poppy, tells the BBC that she couldn't be happier that her parents are out and about having fun.
asserted
parents → tell → fun
She firmly rejects the notion that she and her sister should expect an inheritance.
asserted
she → reject → inheritance
It never even crossed my mind that I'll get money when my mum and dad die.
asserted
mum → cross → money
I'd so much rather them do what they want to do."
asserted
they → do → what
Mike Ambery, retirement and savings director at Standard Life, believes that the move towards skiing in the UK has been driven by the disappearance of final-salary pensions, which provide guaranteed monthly pension payments that last for as long as the retiree lives.
asserted
retiree → believe → payments
Instead, more people in the UK now have what are called defined contribution pension pots, which can run out.
asserted
which → have → UK
Ambery argues that it's easier to be generous with a legacy if you know your retirement income will last as long as you need it.
asserted
you → argue → it
He also points to pensioners wanting to simply enjoy themselves after a life of working.
asserted
pensioners → point → working
"It's just having a little bit of indulgence to enjoy life.
asserted
It → have → life
Let's face it, working life can be very hard for some people.
asserted
life → let → people
In the UK, 16% of pensioners live in poverty, , externalaccording to the Joseph Rowntree Foundation charity.
asserted
% → live → charity
The figure for the US is 15.4%, newly released data shows.,
asserted
data → release → US
But at the same time, UK pensioners have seen their disposable income, excluding housing costs, increase by more than that of non-pensioners over the last three decades, according to the Institute for Fiscal Studies think tank, external.
uncertain
income → see → tank
'I'm spending it all'
asserted
I → spend → it
Karen Green, 60, says she has been very upfront with her children.
asserted
she → say → children
"I have been quite explicit to say there is unlikely to be a legacy because I'm anticipating spending it all."
asserted
I → say → it
Originally from Berkshire, Karen has lived in Provence in the south of France for the past 11 years, and spends more than £10,000 a year on holidays.
asserted
Karen → live → holidays
"This year, I'm going to a yoga retreat.
asserted
I → go → retreat
I did one in March in Morocco," she says.
asserted
she → do → Morocco
"Then in October into November I'm going to Vietnam and Laos to do a little bit of a tour."
asserted
I → go → tour
She describes herself as semi-retired, as she tops up her private pension by still doing some business consultancy work, the job she used to do full-time.
asserted
she → describe → work
When it comes to how much money she has per month, she says that her income is the same as when she was working full-time.
asserted
she → come → month
In addition to her pension and income from her part-time work, she gains 40% of her funds from renting out a property.
asserted
she → gain → property
But Karen insists she's not "crazy with money" and likes "to get a deal".
asserted
she → insist → deal
Like Sarah Moorhouse she won't get her UK state pension until she is 67.
asserted
she → get → pension
That's currently a standard £12,547.60 a year for people who reached the state pension age after April 2016, but it is due to go up next year.
asserted
it → reach → April
As a comparison, retirees in the US get state payments known as social security retirement benefits.
asserted
retirees → get → benefits
…and 5 more, not listed.
The Aporia
