Are you SKIing through retirement proudly?

Ever hear the phrase, SKI-ing or “spending the kids inheritance” and either cringed a little or felt a ripple of excitement frisson through you!  It used to be, back in the previous generation, that some spent their whole life saving for retirement, then their whole retirement saving for their children’s inheritance.  I know my grandfather did.  And I personally think it slowed him down, perhaps restricted him from living the life he could have in the last 35 years of his time.    But the new generation of retirees, much younger and less traditional in their attitudes have taken these trends and are turning them on their heads.  They are living it up with not a whole lot of concern about what they might leave in their inheritance and personally, I don’t blame them.  This is the generation of the SKIer!  Are you one of them!?

We often say in our family that we don’t want their money… we want to see them enjoying their retirement about our baby boomer parents.  Our parents have given us a good education, and cared for us through every minute.  Now we are excited to see them (now all over 60, some retired) doing the trips and making the choices they might only have dreamed of.  I have an attitude that perhaps might conflict with many in my gen (gen X) that is, I want to learn from my parents not earn from them.  They earned their money and I jolly well hope they get a chance to spend it before they die.  In fact, after 28 years of working in a small business, 15+ hours a day, it is delightful to see my dad and his wife finally working out who they are and where they want to go.  I wonder how any youngster could ever resent their parents getting out there and enjoying life!

Living it up opportunities of a lifetime

But how are the best SKIiers doing it, and what is their most exciting options for spending the kids inheritance? We hear wonderful tales in our office of people living their life in terrific ways through retirement.

1.  Purchase, kit out and pack up the van, and get on with travelling throughout Australia, sometimes for months or years at a time.  Some grey nomads choose to work on their way around the country to earn a little income so they aren’t eating into the capital too much while others are happy not to work another day, ever.  My inlaws are just back from three months on the road, which they speak of with the most wonderful smile on their face, and lists and lists of terrific stories.  

I think experiences like these are very important, if you can afford to have them, as they give you those incredible leisure-filled moments that stick in your memory forever.

2.  Pack up and go visit the kids in a foreign country.  My brother lives in America with his wife and two kids and my dad has, since his retirement made it his mission to get over to see them as much as he can.   My mum too, even though she hasn’t retired yet tries to get over there once or twice a year.   It is delightful to watch and important for them to enjoy their grandkids that aren’t so local as they grow up.  Just because they live overseas doesn’t mean they shouldn’t enjoy having grandparents, and the grandparent enjoy having them!

3.  Live in the house of your dreams, in a location you only dreamed of.  It might not be cheap, but many feel they have lived long enough and fought hard enough to finally choose to live in the house of their dreams, somewhere they’ve always wanted to.  This might mean a big move to Tassie, or a relocation to the country.  Perhaps it even means buying a house or unit by the beach and downsizing.

4.  You can simply spend the kids inheritance by living a little better and enjoying life a little more.  More small trips, more little getaways can add up over time to some awesome memories and terrific experiences.

A TD Ameritrade Survey found in 2012 that only 16 percent of Amercians planned to leave money to their Gen Z kids whilst an APIA study found 72 percent of Australians over 50 would rather enjoy their money in retirement than leave it for their kids.

Have you accounted for living longer?

With us living longer and remaining healthier until an older age than the previous generations… is it sensible to hop to it early in retirement to start spending hard early without caution about how long you might live?

The income, savings and assets of baby boomers vary widely with some still having mortgages and expecting to live off the pension (or living off it).  While others have saves quite healthy nest eggs with a decent SMSF pension.  This generation of Baby Boomer have supported their children in their homes for much longer than earlier generation and now

Your kids attitude

It is certainly apparent that different kids have different attitudes to their parents “SKIing” and it possibly comes back to how money has been learned and taught about in your family.  Not all kids want to see their parents living it up spending with freedom.  Some are waiting for the day, with great expectation that they get their hands on some extra money to help out.  Some even feel they are owed it from some of my conversations with peers in my generation (30s-40s).

So tell us today, do you plan to SKI? What is on your SKIing list?   And do your kids appreciate your ambitions?