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Parents Spending Inheritance Of Kids As The Youths Struggle

by Jim ONeil on August 8, 2011

in Personal Finance News

In the past, the retirement years were characterized by financial wariness. Retirees spent time gardening, fixing up their homes, and saving money for their children to inherit. Change is in the wind, with modern-day retirees living a more active lifestyle. It is becoming more common for retired parents to purchase a luxury automobile or jet-set around the world.

This new generation of retirees has earned itself a nickname: SKI- Spending the Kids’ Inheritance. As the economic crisis drags on in Britain, their children struggle to make ends meet. Meanwhile, they are on a remote island enjoying cocktails or driving an RV around a foreign country with no worries.

Parents see their behavior as a reward for all their hard work.

While children are unable to save enough to purchase homes or cars, many are reluctant to ask their parents for financial assistance. Those with poor credit scores would sooner use bad credit car finance to obtain a vehicle than get cash from mom and dad. Becoming a homeowner will need to wait, leading to years of renting for those already in their early thirties.

Children make jokes about their parents whittling away the inheritance but there is some seriousness behind it. Though they do not begrudge their elders for enjoying life after decades of work, they feel sadness that they may never own a car or home.

They are facing high housing prices, an increasing cost of living, and bleak pension prospects.

The gap between baby boomers and their children seems greater than ever now. In the UK, the over-60 population has an amazing £500 billion in collective assets. In 2010 alone, about £240 billion was spent by UK retirees for leisure purposes.

This represented over 60 percent of consumer spending last year. Their children may never be able to afford such a lifestyle.

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