SKIing will cost kids their future

11 July 2006
As a concept, SKIing ('Spending the Kids' Inheritance') has become such a common phenomenon that it now has its own acronym but Friends Provident argues that it could be setting the younger generation up for an uncertain future.

The life and pensions company has commissioned a report, called "Lasting Lifestyles", which asserts that several young people in their 20s and 30s could be set to suffer for the fact that their parents collectively splash out around £240 billion a year.

This accounts for approximately 40 per cent of total consumer spending in the UK, much of which would traditionally be from assets that would be passed on. However, without these funds, those in their 20s and 30s now may need costly loans to stay afloat.

"This is a real balancing act for parents who want to enjoy the money they've worked hard for and saved, but who are also aware that an inheritance would ease their children's financial pressures," said Jeremy Ward, head of pensions marketing at Friends Provident.

"Going forward, inherited wealth will become part of many more families' long-term financial planning and increasingly parents will turn to life and retirement coaches to help them achieve balance.

"This doesn't spell the death of the SKIer but simply the start of a new era of sensible SKIing," Mr Ward concluded.

To read more about loans, click here.

track© Adfero Ltd