The role of a parent never ends. We care for them during infancy, we provide them with the necessities and the luxuries like good health, good love, a rounded education and family support and then we provide for them during the later years helping them get through the next stage of life including university, unemployment, new employment, moving out, getting married, having children and raising their own children. But a trend in how retirees are living shows that there is a point when they finally put themselves first – but it’s riddled with moral dilemma!
That is when the SKIing starts… Spending the Kids Inheritance.
According to Too many children ‘relying on inheritance that they will never get’, “37 per cent of parents intend to spend all their money during their retirement and will have nothing left to pass on”.
It’s the time for cruising, international holidays, dream toys like cars, boats and caravans and lavish entertaining. But it drains the bank account; leaving nothing for the family you will one day leave behind.
While some people believe it’s totally fine – their role as a parent doesn’t need to include financial backstop once they’re independent, other’s believe it’s not fair and call it selfish instead.
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There is a solution to the problem, that if done smartly, can give both parties the best of both worlds. It’s SKIing with the kids!
A family friend is a retired, wealthy woman who invested wisely and has amassed quite impressive savings. Each of her children have followed in her footsteps as hard workers and are also more than financially sound – a testament to their mother.
She decided that she didn’t want to leave the kids her fortune as they have enough of their own, so instead she has put in place quite an incredible plan. Each year, she takes the family on a holiday all expenses paid for. Her way of looking at it is that when she leaves the world one day, she wants to do so with beautiful, happy family memories. And she wants her children and grandchildren to do the same.
It presents as quite a nice concept. Instead of leaving them something physical, she’s leaving them with memories – family memories and wonderful family experiences will be her legacy.
It’s an unusual way of looking at the concept of inheritance and enjoying yourself in retirement. But it isn’t for everyone. A reason that many people don’t live out their retirement like this is because their wealth is tied up in the family home and they’d rather live there during retirement instead of downsizing with some cash to play with. More often than not, the family home is left to the children so there is still a financial legacy.
Ultimately, a financial legacy isn’t on the top of the list when it comes to making your retirement plans, but this is an interesting idea!
Tell us, do you plan to SKI? Or would you like to try and do something like SKI with the family? Share your thoughts in the comments below…