Boomers Are ‘Spending the Kids’ Inheritance’ and Younger Generations Have Thoughts
Most employees look forward to the day when they can punch the clock for the last time. In fact, a lot of people spend the last half of their career counting down the days until their retirement starts, eagerly planning for their golden years.
Currently, the Baby Boomers and Gen X are the largest groups of adults entering into retirement as their Millennial and Gen Z children watch.
However, a new report from Fortune says that the kids of today’s retirees shouldn’t expect to inherit any of the wealth that allowed their parents to retire so comfortably. That’s because most of this age group is largely planning to spend the $124 trillion that was expected to transfer between generations by 2048.
That could spell disaster for the Millennials and Gen Z who were hoping to get a piece of their parents’ hard-earned money when they die as part of the “Great Wealth Transfer.” That’s especially true for as many as 60 percent of Millennials and half of Gen Z who were surveyed about their retirement and said they were relying on some form of inheritance to enjoy their own golden years.
Today’s Retirees Are More Interested in Traveling Than Leaving Their Kids Money
Gen Z and millennials expect to inherit $124 trillion—but retired boomers are ‘spending their kids’ inheritance’ to go on vacation instead
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According to the outlet, Baby Boomers are experiencing better health and wealth than previous generations, which has left them in a unique position where they are able to get out and enjoy the money they have saved up for retirement. And many of them are doing so without giving a second thought to whether they will leave anything behind for their children, instead focusing on enjoying the money they spent their entire lives working for.
This mindset is so common that it has been given the nickname ski-ing, which stands for “spending the kids’ inheritance.”
A Reddit Post About ‘Ski-ing’ Shows How Frustrated Some People Are About It
The article was posted to Reddit by Fortune, prompting a lengthy discussion about ski-ing in the comments. “I got kicked out at 18 without warning so that they could go on even more vacations than they already were,” one person wrote. “It’s not even about inheritance; it’s about the basic responsibility of helping their kids transition to stability in adulthood.”
Another person took a different approach in their comments, acknowledging that nobody was guaranteed a chunk of someone else’s savings. “On one hand, you’re certainly not owed an inheritance,” they wrote. “On [the other] hand, I’m definitely fed up [with] paying for boomers’ pensions and social benefits that will be long gone when it’s my turn; everything caters to those old geezers.”
Some Worry About What ‘Ski-ing’ Could Mean for Long-Term Planning
While it’s clear that a little generational animosity has played into a lot of the responses from people who think that Baby Boomers are self-centered, there were some who pointed out that this generation could also face some significant health issues that they may not have the money to deal with.
One person shared their own perspective, writing, “My dad and stepmom spent their whole life saving for a good retirement, and planned to go on so many vacations. Then she developed early Alzheimer’s at 60, and they burned through all their savings for her to be in a memory care unit until she died. Now my dad is 75 and still working.”
“The wealth transfer will be eaten by exploding end-of-life medical care bills,” another person wrote. “Boomers will give their houses to Medicare and their retirement and pensions to assisted living and die penniless.”
