Should You Expect No Inheritance? Here’s How Boomers Plan To Spend Their Money
Written by
Rafaela Stalbalk Klose
Edited by
Zuri Anderson
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Inheritance is rarely discussed, yet it lingers in the back of many minds. For some, it’s seen as a future safety net — a way to pay off debt, buy a home or retire comfortably. But what if that safety net never comes?
Baby boomers, born between 1946 and 1964, hold more wealth than any generation in history, according to Allianz’s 2024 Global Wealth Report. However, their plans may not align with expectations. Many are prioritizing retirement spending, gifting wealth early or focusing on charitable giving rather than leaving traditional inheritances.
With these shifting trends, younger generations may need to rethink their financial future. Relying on an inheritance isn’t a solid strategy — understanding these changes can help build a more secure financial plan.
Boomers Are Spending Their Money Differently
As more boomers enter retirement, many are rethinking how to use their savings. Unlike previous generations, who focused on leaving money for their children, today’s retirees are prioritizing quality of life — spending on travel, hobbies and even helping grandchildren with education costs.
Longer life expectancy also plays a role. With rising healthcare costs, retirees must make their money last, leading many to focus on financial security rather than leaving behind a large inheritance. Assisted living, in-home care and medical expenses are consuming a growing share of retirement funds, leaving less to pass down.
The Rise of the ‘SKI’ Trend
The term “SKI” (spending kids’ inheritance) has gained popularity, describing a mindset where boomers choose to enjoy their hard-earned money while they can.
Luxury vacations, second homes, and bucket-list experiences are becoming priorities. While some may view this as indulgent, many boomers see it as a reward for decades of work and financial discipline.
For millennials and Gen Z, this shift can be surprising. Many grew up hearing stories of inheritances that helped previous generations buy homes or start businesses. But the financial landscape has changed, and boomers are adjusting their priorities to fit modern realities.
Rising Costs Are Reshaping Retirement Plans
The cost of living has surged, making financial planning more challenging for retirees. Healthcare, housing and everyday expenses are taking a larger bite out of savings. Many boomers are also helping adult children with rent, student loans or childcare — support that often comes at the expense of future inheritances.
At the same time, long-term care is a growing concern. Assisted living and in-home care costs are higher than ever, forcing many retirees to use their savings for their own well-being rather than passing it down.
More Wealth Is Going to Charity
Philanthropy is becoming a bigger priority for many boomers, with more choosing to leave their wealth to charitable causes instead of their children. Donations to nonprofits, educational institutions and community organizations are on the rise, with some boomers setting up charitable foundations or trusts to make a lasting impact.
This shift isn’t just about generosity — it’s also a strategic financial move. Charitable giving can provide tax advantages, allowing boomers to maximize the impact of their wealth while reducing estate taxes.
Early Giving Is Replacing Traditional Inheritance
Rather than passing down wealth after death, many boomers are opting to gift money while still alive. Whether it’s helping with a down payment on a house, covering tuition costs or providing financial support for new business ventures, this approach allows them to see their children and grandchildren benefit from their wealth in real-time.
Early giving also offers more control, ensuring that money is used as intended rather than being tied up in estate disputes or taxes. For younger generations, this means financial support may come sooner — but it could also mean less left behind in a traditional inheritance.
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