Retirees increasingly prioritize lifestyle spending over leaving inheritances

A growing global trend in personal finance shows retirees increasingly choosing to spend their wealth on lifestyle and travel rather than preserving it for their children. This phenomenon, sometimes referred to as ‘spending the kids’ inheritance’, challenges the traditional expectation of generational wealth transfer.

In the United Kingdom, a report from pension provider Standard Life indicates that 15% of parents, or approximately one in seven, plan to prioritize personal enjoyment during retirement over leaving an inheritance. Similarly, data from financial services firm Northwestern Mutual shows that in the United States, the percentage of people expecting to receive an inheritance from their parents fell to 20% last year, down from a projected 25% in 2024.