Why We’re Spending Our Children’s Inheritance on Ourselves NOW – and It Makes Sense You Should Do the Same

You have worked hard and given your children everything they need when they are growing up. You have also been wise with money to save for your future so that you do not have to work longer than necessary.

Now that you’re nearing retirement, it’s time to enjoy the fruits of your hard work. You’ll have the time and money to indulge in luxury vacations and adventures around the world – without worrying about what’s left for your children.

That’s the opinion of retired entrepreneur Mandy Watson. Now that their four children are grown up, Mandy, 57, and her husband Trevor, 64, are ‘obsessed’ with travel.

They have been to all seven continents and over 65 countries together and are currently in the middle of a ten-week trip that started in the US and will then take them to Iceland, Norway, Venice and the Greek Isles.

Mandy describes herself as an active member of the growing ‘SKI group’, which stands for Spending the Kids’ Inheritance.

Mandy and Trevor have been married for over 30 years and have four children together, aged 40, 37, 28 and 24, and four grandchildren.

Retirement used to mean tending to the garden, helping with childcare, and being careful with the money to leave a healthy legacy for children and grandchildren. With better health and life expectancy, this means that more and more people are prioritizing extravagant holidays without worrying about whether there will be anything left for the kids.

Mandy and Trevor’s next late summer getaway is an African safari. A 12-day train trip through Switzerland over Christmas will round out their travel plans for this year. For 2025, the couple have booked flights to Nepal and a cruise through Canada and Alaska.

“We are determined to live now. Remember, it’s not the children’s inheritance until you start pushing daisies up! Until then, it’s your bank balance,” says Mandy from Queensland, Australia.

Mandy and Trevor have been married for over 30 years and have four children together, aged 40, 37, 28 and 24, as well as four grandchildren.

Mandy says the couple have always enjoyed vacations, but were constrained by responsibilities. Eight years ago, when the children were old enough to look after themselves, they decided to take the plunge and take longer, more adventurous trips.

They dropped projects they wanted to pursue at home, took a step back from their production company and embarked on a dream trip to Machu Picchu and the Galapagos Islands in Ecuador.

‘A cancer diagnosis meant we started thinking more about ourselves and life, because you never know what’s around the corner,’ says Mandy. ‘I have a tattoo on my inner forearm that just says adventure for dementia.’

The couple are now fully retired, having sold their business last year, which means they can take longer trips – sometimes for more than two months at a time. Mandy blogs about her travels on her aptly named website spendingkidsinheritance.com.

The couple are now fully retired, having sold their business last year, meaning they can take longer trips

“We’re drinking through our savings right now. We’re kind of in that phase of spending the inheritance. But the kids are very supportive and I hope one day our grandkids will think how cool it was that we decided to do this. Everyone will take when you give, but if they really love you, they’ll support whatever you want to do.”

Many retirees today enjoy comfortable retirements, having taken advantage of generous pension plans at work and rising house prices.

According to the latest analysis from the Intergenerational Foundation, around 27 per cent of people over 65 – or 3.1 million – lived in a household with a total wealth of more than £1 million in 2020. That’s almost four times the 846,000 people who lived in millionaire households in 2010.

Retired households now have an average disposable income of £2,496 a month (or £29,952 a year). This is around 63 per cent more than in 1999, even after adjusting for inflation, according to investment platform Interactive Investor.

This is higher than couples with two children, who have an average disposable income of £2,275 a month, or £27,300 a year. Alice Guy, head of pensions and savings at Interactive Investor, said: ‘Rising pension incomes reflect rising state pensions and also generous occupational pension schemes. The triple lock on the state pension has gradually lifted incomes and lifted millions of pensioners out of poverty.’

There is also inheritance tax to consider. If you are a married couple with a total wealth of more than £1 million, you could be subject to a 40 per cent tax on any money passed on to your loved ones. Single people who do not leave a family home have a tax-free allowance of just £325,000. So some would argue that you are better off spending the money now.

‘With rising life expectancies and higher care home bills, it may also be worth considering how much inheritance you will actually leave for your children,’ says Victoria Ross of financial advisor Progeny. ‘Your children should be aware that receiving a large inheritance is not a given.’

Bill Samuel, 83, is also filling his retirement with travel and experiences, although he also takes his children and grandchildren with him.

Bill has three daughters, eight grandchildren and one great-grandchild. His daughters have told him that they do not want to inherit any money when he dies. Instead, they want him to live life to the fullest and for the family to share wonderful experiences together.

Bill was an accountant before he retired. He is the grandson of William Foyle, famous for setting up the Foyles chain of bookshops, including its flagship store on Charing Cross Road in London.

Bill wouldn’t describe himself as wealthy, but says he has “enough money to get me through life with a little left over.” He and his wife now take one of his daughters and their family on luxury vacations each year that they wouldn’t normally be able to afford. In the past decade, they’ve visited Borneo, Nepal, Tanzania, Kenya and Ecuador.

“I try to choose locations where my grandchildren can experience cultures or experiences that they wouldn’t have in England,” Bill says. “It’s also about building memories, because I don’t live near my grandchildren.”

They are between 13 and 33 years old and his three daughters are in their late forties and fifties.

Bill’s next trip is to the Grand Canyon with his eldest daughter, granddaughter and great-granddaughter, who will soon be one year old.

“I really try to get to know my grandchildren and for them to get to know me. My grandfather was a huge influence on my young life – but I didn’t know anything about him.”

Are you spending your children’s inheritance? Let us know by emailing money@mailonsunday.co.uk