UK & US Pensioners Spend Children's Inheritance on Travel
A report reveals 15% of UK parents plan to prioritize enjoying their retirement funds on travel and lifestyle rather than leaving an inheritance for their children.
Stock photo for illustration only, not from the actual event
- 15% of UK parents plan to spend retirement funds on themselves instead of leaving an inheritance.
- Shift from final-salary pensions to defined contribution pots changes retirement spending habits.
- Retirees like Karen Green spend over £10,000 annually travelling in Provence, France.
- Experts advise retirees to communicate clearly with adult children about inheritance expectations.
While previous generations of retirees focused on accumulating wealth to pass down as a legacy, a growing number of older adults in the United Kingdom and the United States are choosing to spend their retirement savings on travel and lifestyle experiences, even if it means leaving nothing behind for their children.
Happily retired Sarah Moorhouse, 64, and her husband Geoff use their private pension funds to travel and enjoy life spontaneously. The couple recently sold their vintage Sunbeam Alpine sports car simply to replace it with a modern, sporty two-seater convertible, a Mazda MX-5. Their adult daughter Poppy told the BBC that she could not be happier seeing her parents enjoying their retirement years to the fullest.
Stock photo for illustration only, not from the actual event
According to a March report by pension provider Standard Life, 1 in 7 UK parents of children of all ages (15%) plan to prioritize enjoying their money during retirement over leaving an inheritance. Meanwhile, in the US, the proportion of individuals expecting an inheritance dropped to 20% last year, down from 25% in 2024, based on a study by financial services firm Northwestern Mutual.
Mike Ambery, retirement and savings director at Standard Life, explains that this trend is largely driven by the decline of final-salary pensions that offered guaranteed lifetime monthly payments. Instead, defined contribution pension pots have become more common, leading retirees to prioritize enjoying their remaining years after a lifetime of hard work. Official figures show that 69% of UK retirees and 56% in the US hold a private pension alongside state benefits.
The structural evolution from guaranteed defined benefit pensions to self-managed defined contribution accounts has fundamentally altered retirement economics. As individuals shoulder more responsibility for their post-work income sustainability, psychological attitudes toward intergenerational wealth transfer are shifting toward experiential spending, reflecting a broader cultural emphasis on health, mobility, and personal fulfillment during retirement years.
Another example is Karen Green, originally from Berkshire, who has lived in Provence, southern France, for 11 years and spends over £10,000 annually on holidays. Working semi-retired as a business consultant and renting out a property, Karen maintains an income comparable to her full-time working days and has warned her children that no inheritance money might be left.
"Retirees need to be upfront with their adult children, some of whom might be expecting an inheritance that they intend to rely on."
Matthew Loveless, Vice President at Northwestern Mutual in Ohio
Source: BBC Business
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