I have many clients who enjoy skiing. It is an activity that they participate in as a family with their children, making it a focus of their vacations. However, unlike Bugs Bunny below, I have never been blessed with the skill required to do balance sports such as skiing or skating. I was always much happier when someone gave me a ball and a bat, a racket, or a hoop.
Source: eBay
Recent data shows that many Baby Boomer parents are embracing the idea of SKI, also known as “Spending Kids' Inheritance.” This means that they are prioritizing their own enjoyment and experiences over leaving a large inheritance to future generations.
A recent survey by Charles Schwabof more than 1,000 high-net-worth Americans revealed a generational divide in intentions for passing wealth down to the next generation. Results showed that 79% of Baby Boomers plan to enjoy the money they worked so hard to save during their working lifetimes.
Many shared that after a lifetime of saving and making sacrifices, they are now intentionally planning to enjoy what they have accumulated. They feel this is the ultimate reward for a life of hard work and financial discipline. Many of these Boomers, especially those in their early years of retirement, want to share experiences, make memories, and live their best life once they are no longer working.
There are three primary factors driving parents to adopt the idea of SKI. The first is that some retirees have watched friends or previous family members pass away shortly after retiring, before they had the opportunity to enjoy all that they had worked so hard for. They believe that life is short, and they want to enjoy extraordinary experiences in retirement while they can. These early retirees are also okay with leaving a smaller inheritance for their children and grandchildren.
The second reason is that some parents are concerned that leaving a large inheritance to future generations may cause them to be less motivated to work hard. While many have a desire to help their kids and grandkids, they do not want to provide them with a life free of worry or want. They also wish for their next generations to have the motivation and fulfillment that comes from hard work and achievement.
The final reason is that some retirees are concerned that their children may make poor lifestyle and spending decisions if they inherit a large amount of money. Some Baby Boomers don't understand or agree with the financial priorities of younger generations, and therefore, don't want to give them additional resources for these decisions.
I remember seeing cars with the bumper sticker “I'm spending my children's inheritance.” That may sound enticing, but nobody knows how long they will live or when their expiration will be. As a result, I have found that many clients are hesitant to spend too much too soon, fearing that they may not have sufficient resources if they live beyond their normal life expectancy.
Source: eBay
SKI-ing can also deplete parents' and grandparents' resources and keep them from leaving a meaningful legacy for future generations’ education and financial security. It also leaves less money for charitable intentions or legacies that clients may wish to create.
Another generational difference revealed by the survey was that only 19% of Boomers plan to make gifts to their family members while they are living. This compares to 49% of Millennials and 52% of Gen Xers. Boomers say it’s not about being stingy or selfish, it’s about using the resources they built to create meaning in their own lives. Many believe that some resources will still be available to support the next generation after they are gone.
This generational difference also extends to gifts to charities and those in need. Baby Boomers continue to make planned gifts through means such as their wills and beneficiary designations. However, Millennials and Gen Xers seem more likely to respond to urgent needs, such as those recently affected by the California wildfires or the hurricanes in Florida and the Carolinas. Younger donors tend to want to see their dollars make a difference today rather than years down the road.
It will be interesting to see if the views of younger generations on money and wealth evolve as they age. It is possible that Baby Boomers are focusing on enjoying their wealth as they realize that both their lifespan and their health span are decreasing. Boomers were taught to delay immediate gratification and save for a rainy day. Many now feel that the time has come for them to reap the benefits of their previous discipline.
As recently retired Baby Boomers voice their intention to SKI, I find that most of them still struggle to spend too much too soon. This comes from decades of ingrained behavior and saving for the future. When it is all said and done, many more clients discuss spending generously in retirement than actually do so.
However, clients whom I have been blessed to work with for more than 30 years recently stated that they have realized, “If we don’t use our money to fly first class, eventually our kids and grandkids will” (you know who you are). I was happy to see them utilize the resources they had worked so hard to accumulate for their own benefit and enjoyment.
It was a small step, but a step nonetheless, on the path to allowing themselves to enjoy life in retirement. Knowing that most of my clients have a proclivity for saving money and building wealth, I am confident that there will still be resources left at the end of the day to create a meaningful legacy for their next generations.
SKI is a new acronym and thought process for those moving into their retirement years. While I told you that I can’t do it, SKI-ing is an activity that we hope to help many clients pursue as we continue “Moving Life Forward.”
© 2025 Jesse Hurst
Senior Wealth Manager
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