A growing number of older adults in South Korea and abroad are opening their wallets for travel and hobbies in retirement rather than setting aside assets for their children.
"My Life Over an Inheritance": Older Adults Spending on Travel
U.S. business magazine Fortune recently reported that a trend known as SKI — "Spending the Kids' Inheritance" — is spreading among retirees in Britain and the United States, who are choosing to spend on their own leisure rather than leave assets to their children.
In a report by Standard Life, a British pension provider, one in seven British parents said they would rather spend money enjoying life after retirement than leave an inheritance to their children.
The shift shows up clearly in travel spending. In a recent 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, up 5 percentage points from a survey two years earlier.
Mark Tanzer, chief executive of ABTA, said older adults are healthier and financially more comfortable than in the past. He added that the tendency to spend money on themselves while they are alive, rather than leaving an inheritance or paying inheritance tax, has grown stronger.
Spending on travel by retirees in the United States has also reached substantial levels. An analysis of its own sales data by Squaremouth, a travel insurance comparison site, found that couples aged 65 and over spent an average of $9,960 (about 13 million won) per trip. That was roughly 1.5 times the average of $6,618 (about 8.75 million won) for couples under 50.
Korea Has Changed Too: Retirement Assets for Themselves, Not Their Children
In Korea as well, a growing number of older adults intend to use their assets for themselves and their spouses rather than pass them on to their children. According to the 2023 Survey of Living Conditions of Older Adults released recently by the Ministry of Health and Welfare, 24.2% of people aged 65 and over said they would spend their assets on themselves and their spouses.
That is up 6.8 percentage points from 17.4% in 2020 and more than double the 9.2% recorded in 2008. The figures suggest a growing view that retirement assets are a resource for one's own living expenses and leisure rather than simply wealth to be handed down to children.
As retirees spend more actively on travel, hobbies and new experiences, industries targeting them are expected to grow in importance. Analysts say older adults should be seen not merely as a generation cutting back on consumption but as consumers with ample time and spending power who are driving the leisure market.
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