Why Baby Boomers Are Spending Their Children's Inheritance on Luxury Travel
New York, Thursday, 22 October 2026.
Over half of Baby Boomers plan to leave no inheritance, actively spending their wealth on travel and lifestyle—upending expectations for the anticipated $124 trillion generational wealth transfer.
The Disruption of Generational Wealth
The anticipated $124 trillion generational wealth transfer faces significant disruption as Baby Boomers prioritize personal expenditure over legacy planning [1][2]. Known as SKI-ing or Spending the Kids’ Inheritance, this trend sees retired individuals allocating capital toward luxury travel and experiences rather than asset preservation [1]. Cerulli Associates projects this wealth transfer will occur through 2048, yet current spending behaviors suggest a substantial portion may never reach Millennial or Gen Z heirs [4]. This shift presents strategic implications for wealth management firms and macroeconomic forecasting models that relied on heavy wealth concentration passing to younger generations [1][2].
Travel and Spending Data
Recent data from Abta indicates 82% of UK residents over 65 took a holiday in the 12 months preceding 21 October 2026, representing a 5 percentage point increase from 2024 levels [1][2]. This rise implies a previous holiday rate of 77 percent among the demographic during the comparable prior period [1]. Concurrently, a 2024 Northwestern Mutual survey of 4,500 U.S. adults found only 22% of Baby Boomers expect to leave an inheritance, meaning 78 percent do not prioritize wealth transfer [1][2]. Over 50% of respondents explicitly planned not to leave assets to heirs, citing lifestyle enjoyment as a primary driver [2].
Expectation Gaps in Business Succession
A 2026 Wells Fargo Wealth Transfer Study reveals a 48-percentage-point disparity in business succession expectations within family-owned enterprises [3]. While 67% of adult children expect the company to pass to them, only 19% of business owners plan to transfer the company to their children [3]. This misalignment highlights a critical communication gap, with over 75% of parents reporting comfort discussing wealth transfer but only 21% conducting detailed conversations with their children [3]. Such discrepancies risk negative family experiences tied to inherited wealth, reported by 61% of adult children [3].
Strategic Implications for Heirs
Wealth management firms advise that effective transfer requires preparing both the assets and the beneficiaries for the transition [5]. ONS data quality for wealth measurements is currently impacted by the suspension of the Wealth and Assets Survey’s official accreditation, meaning existing figures serve only as a broad guide [alert! ‘ONS data accreditation suspended’][5]. Nonprofits are also advised to engage the next generation of donors early, as 9% of wealthy individuals currently use donor-advised funds, rising to 20% among younger donors [4]. Institutions must adapt to non-cash assets such as companies or stock positions which often comprise these transfers [4].