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For a long time, the goal of retirement planning felt pretty straightforward: save diligently, spend carefully and leave something meaningful behind for your kids.
But that script is starting to change. More retirees are rethinking what they want their money to do for them. Instead of holding back for the sake of a larger inheritance, they are choosing to spend more on experiences now, especially travel. You may have even heard the phrase “SKI,” short for “Spending Kids’ Inheritance,” pop up in conversations or headlines.
At first glance, it can sound a little extreme. But for many people, it is less about spending recklessly and more about being intentional, recognizing that health, time and energy are not guaranteed forever. The question is not just how much you will leave behind anymore. It is how you want to live along the way, and how your financial plan can support both.
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What is the SKI rule — and why is it gaining traction now?
At its core, SKI, or Spending Kids’ Inheritance, is about flipping the usual order of priorities. Instead of focusing first on what you will leave behind, the idea is to think about how you want to use your money while you are here to enjoy it.
For many retirees, that shows up most clearly in travel: booking the big trip, saying yes to experiences and not putting everything off for someday.
And right now, the timing makes sense. People are living longer, but not necessarily healthier for longer. There is also more uncertainty around future healthcare costs and long-term care. Add in the perspective shift many people had after the pandemic, and it is no surprise more retirees are asking: What am I waiting for?
That does not mean abandoning financial discipline. It simply means being more intentional about when your money is meant to be used.
Why retirees are choosing experiences over inheritance
For a lot of people, this shift comes down to one simple realization: money can be saved indefinitely, but time can’t. Experiences, especially travel, offer something different than material purchases. They create memories, strengthen relationships and often feel more meaningful over time.
A kitchen upgrade or a new car may bring convenience, but a family trip tends to stay with you in a different way. There is also an emotional benefit to seeing your money at work in real time. Instead of leaving behind a larger inheritance they will never witness, some retirees would rather enjoy their resources now or share those experiences with their children and grandchildren.
In many cases, it is not about choosing one over the other. It is about finding a balance that aligns with your values.
How much are Americans actually spending on travel?
Travel is no longer just an occasional splurge. It has become a major part of how Americans choose to spend their money. On a broad level, total U.S. travel spending was projected to reach about $1.35 trillion last year, showing just how significant travel has become in the overall economy.
Zoom in to the household level, and the numbers are just as telling. One recent estimate found that Americans expect to spend around around $10,600 on trips and vacations in 2025.
That marks a noticeable shift from just a few years ago and reflects changing priorities. For many households, travel is no longer an occasional expense. It is becoming a core lifestyle category, competing directly with home upgrades, cars and other big-ticket purchases.
And that’s what makes the SKI trend so relevant. When people are willing to allocate this much of their budget toward experiences, it signals something deeper: a growing belief that the value of money isn’t just in what you keep, but in how you use it.
The financial trade-off: Travel now vs. leaving wealth later
Of course, every decision to spend more now comes with a trade-off.
Money used for travel today won’t be available later, whether that’s for your own needs or for your heirs. That’s why it’s important to zoom out and look at how these choices fit into your overall plan.
A few areas to keep in mind:
- Your long-term financial security: You’ll want to make sure increased travel spending doesn’t put pressure on your ability to cover essential expenses later, especially if markets are unpredictable.
- Healthcare and long-term care costs: These can be some of the largest and most uncertain expenses in retirement. Building in a buffer here is key.
- Your legacy goals: If leaving money behind is important to you, it’s worth being clear about what that number looks like so you can plan around it.
How to adopt a smart SKI strategy
(Image credit: Getty Images)
If you like the idea of prioritizing experiences but still want to stay financially grounded, a few simple strategies can help.
Set a baseline for what you want to keep: Think about the minimum amount you’d like to preserve, whether that’s for your own peace of mind or for your heirs, and plan your spending around that.
Build travel into your budget: Rather than treating trips as occasional splurges, factor them into your retirement plan so you can spend confidently.
Focus on what matters most: Not every trip has to be over-the-top. Prioritize the ones that feel meaningful or time-sensitive.
Be mindful of timing: Early retirement is often when you have the most energy and flexibility. It can make sense to plan bigger or more active trips during this window.
Consider giving along the way: Sometimes, smaller financial gifts or shared experiences during your lifetime can have a bigger impact than a larger inheritance later.
When SKI can go too far
Like any trend, it’s possible to take things too far. Spending aggressively without a clear plan can create challenges down the line, especially if unexpected expenses come up or if investment returns don’t meet expectations.
Some common risks include:
- Running through savings too quickly
- Underestimating healthcare or long-term care costs
- Letting lifestyle upgrades quietly increase overall spending
A well-executed SKI approach should give you more freedom and confidence while being mindful of these risks and making sure there’s financial margin to fall back on should you need it.
It’s about balance, not extremes
The SKI approach may not be a fit for everyone, but it’s worth considering if you’re prioritizing travel and experiences during your retirement years. A thoughtful financial plan can make room for both enjoying your life now and leaving a legacy behind for loved ones.
That might mean taking the trip, funding a family vacation or simply giving yourself permission to enjoy what you’ve worked hard to build, while still protecting your long-term needs. In the end, it’s not just about what you leave behind. It’s about making sure your money supports the kind of life and legacy you actually want.
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