“I’d rather spend it myself than leave it to my children” ... Retired parents travel abroad instead of leaving an inheritance

[Financial News]  As the so-called “SKI (Spending the Kids’ Inheritance)” phenomenon spreads among retired generations in the UK and the US, with people spending freely on travel and hobbies instead of leaving an inheritance to their children, a similar trend is also emerging among older people in South Korea.
On the 26th, U.S. business magazine Fortune reported, citing a report by UK pension specialist Standard Life, that one in seven British parents said they would spend money enjoying their lives after retirement rather than leave an inheritance to their children.
Parents’ “I’ll spend my own money” mindset was particularly evident in travel.  According to a survey by the Association of British Travel Agents (ABTA), 82% of respondents aged 65 and over said they had taken a holiday in the past year. That was an increase of 5 percentage points from two years earlier.
Mark Tanzer, ABTA’s chief executive (CEO), said, “Older people are healthier and more financially comfortable than they were in the past,” and observed, “The tendency to spend money on themselves while they are alive, rather than leave an inheritance to their children or pay inheritance tax, has grown stronger.”
They spend more than younger generations. An analysis of its own sales data by U.S. travel insurance comparison company Squaremouth found that the average cost per trip for couples aged 65 and over was $9,960 (about 13.21 million won), around 1.5 times the $6,618 (about 8.78 million won) for couples under 50. Their average trips were also 15 days long, four days longer than those of couples under 50 (11 days). Their destinations varied widely, including Europe and Japan, as well as Antarctica and Africa.  
Meanwhile, the views of older people in South Korea are also changing. According to the Ministry of Health and Welfare’s “2023 Survey on the Status of Older Persons,” 24.2% of respondents aged 65 and over said they would use their assets for themselves and their spouse, up 6.8 percentage points from 17.4% in 2020. That was more than double the 9.2% recorded in 2008.
[email protected] Kim Su-yeon Reporter