Long gone are the days when the word ‘retirement’ conjured up visions of rocking chairs and balls of knitting. Today’s older generation has the world at its feet, and our latest insight shows that they’re making the most of every opportunity to live life to the full with the emergence of a new phenomenon: SKI-ing, or “Spending the Kids’ Inheritance”.

The team here has been looking into how these broader spending horizons are impacting the UK’s savings habits - both for retirees themselves and their younger relatives - and the results are in.  

Who’s for SKIing?

Our exclusive insight reveals that, at a time when many are tightening their belts financially, SKIers are splashing out on an impressive £91 billion worth of lifestyle-enhancing treats from savings originally intended for their younger relatives’ inheritance. Almost two thirds of over 50s in the UK have planned to leave money for their children or grandchildren and, of those, half admit they might spend some of those funds on large luxury purchases instead. A once-in-a-lifetime holiday is the indulgence of choice, with over a third deciding to buy a new car and just under a fifth using the cash to renovate a home.

Taking retirement off-piste

The majority of the SKIers we spoke to reasoned that they are still fit and healthy and want to live life to the full, and dipping into inheritance pots has made this more achievable than ever before. In addition, the introduction of pensions freedom has led to far greater flexibility over what people can do with their savings, which is something these SKIers are set on making the most of. We also found that that nearly a fifth of pre-retirees now feel more in control of their retirement planning than they did a year ago, due to simpler savings products having made it easier for them to put money away. At RCI Bank, we pride ourselves on offering a simple and real alternative to traditional savings products without forfeiting great rates, and it is fantastic to see these saving options making it easier for people to bolster their nest eggs.

Is it all downhill for non-retirees?

With less in the inheritance pot than they might have been banking on, are the younger generations set for a bumpy ride? Our analysis showed quite the opposite: on average, non-retired UK adults are each saving £21 a month more towards their retirement than they were a year ago, working towards a financially stable future for themselves independently of their older relatives. This is reassuring, and gives retirees the freedom to spend money they may not have felt they could access before. People save throughout their working lives to make retirement an exciting and comfortable time and, with a more energetic and healthier population than ever before, it’s no surprise that we are seeing more people aim to live life to the full by taking-up the new SKI-ing retirement plan.

Steve Gowler is CEO of RCI Bank UK. Read more about him here.