An Australian couple has revealed how much they’re spending in retirement, sparking a backlash from people who think the money should be given to their sons. Leanne and Leon Ryland saved money during their working years and are now living the lavish lifestyle while they still have the time.
They said SBS Insight They are part of a new trend called Spending Your Kids Inheritance (SKI), which goes against the traditional approach of setting money aside to pass on to future generations. Lianne said she had to change the way she thought about saving so she could enjoy the fruits of her hard work in retirement.
“We’ve done all the right things: invested in real estate, built up savings, stayed healthy, held back a lot of stuff,” she said on the show.
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“I can’t spend all this money, so I’ll give it a go, because in 10 years I won’t be climbing the Great Wall, I won’t be climbing Machu Picchu,” she said.
Since then, they’ve spent more than $170,000 on an epic trip around the world, run an online skiing group to help other older Australians figure out what to do with their retirement savings, and they joke that the only thing their sons will inherit will be the trinkets they bought on holiday.
“I’m trying to convince [Leon] “We need to spend the money now because if we don’t spend it, he’s going to get it,” Leanne said, pointing to her son, Alex, in the television audience.
This may have been difficult for Alex to accept, but he was supportive.
“It’s their money,” he said, “and they’ve worked hard and invested to earn it, so they should be free to decide what they want to do with it.”
Alex added that he never thought of his parents’ money as a “legacy” and so didn’t mind them spending all of it.
“My parents raised me to be independent,” he says. “I don’t need them for money.”
But he says he got a “pretty good deal” when he bought the house from his parents — for half what the house was actually worth.
Rebellion against doing what you want to do
While the Rylands seem to be in unanimous agreement about how to spend their money, some Australians have different ideas.
They urged Liang and Leong to be more lenient with their sons and prepare them for the future.
“As a parent I will always put my children’s needs before my own. It’s funny how most parents who brag about spending their children’s inheritances are usually the ones they inherited from their parents,” one Australian wrote.
“What a selfish society we have become. I think families should help each other out to improve their lives,” said another.
A third went so far as to say: “Baby boomers are evil… they brag about traveling abroad without caring about the environment and spend all their money so they don’t leave an inheritance for their kids.”
But some on the Rylands’ side thought they should do what they wanted.
“No one should expect to inherit anything from someone else. If they do, it’s just a windfall. Money you earn should be able to spend however you want,” one user said.
“I don’t think children should expect an inheritance from their parents,” says another.
Millions of Australians want to receive their inheritance sooner
Finder data suggests a third of Australians expect to receive an inheritance.
Interestingly, two in five respondents, or 8.3 million people, admitted that they would prefer to receive gifts from their family members while they are still alive, rather than waiting until they have passed away.
Sarah Megginson, personal finance expert at Finder, said there were big benefits to this approach.
“Early inheritance allows parents to watch their children and grandchildren enjoy their gift, and receiving a sudden financial boon at a young age increases the opportunity to use it for something that will dramatically improve their life, such as a down payment on a home or investing in an education,” she said.
“It should not be a decision that is made without serious consideration of future financial needs and tax implications.”
Finder says 10% of Australians believe they will receive an inheritance within the next 10 years, but another 13% think it will be around 20 years before they get a large sum of money.
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