I belong to the SKI club; nothing to do with snow or slopes, it’s the latest acronym in the vocabulary of those above 60. For those unfamiliar with it, SKI stands for Spend Kids’ Inheritance. And so I do.
There are many reasons for this attitude, and they have nothing to do with selfishness, extravagance or irresponsibility. One day, it struck me that my mother left us nothing when she died. She had only one asset, the family house, and she had sold it, some years back, to one of my brothers.
I never thought much about the lack of an inheritance, as there were six of us and my mum, being a widow, had to work hard all her life to make sure we were all fed, never mind the luxuries. But she did manage to give us a college education, which stood us in good stead in our future.
Today, I’m past the age she died. And like many in the pioneer generation, I’ve accumulated a small nest egg for my retirement, which grew as Singapore turned into a thriving metropolis. No longer third world, the country now claims a developed nation status.
Rationale for SKI Club
Unlike my mother, today I do have retirement money to live on until I die. I do not depend on my son for support.
Likewise, I do not think he should depend on me for support.
He should accumulate enough wealth to see himself well into old age. He’s an only child, so whatever assets I have left upon my death would anyway cushion his efforts. But he should not rely on me. Hence why I joined the SKI Club.
That aside, the real problem with my generation is that we’re used to saving, not spending. It is hard to spend on ourselves unless it is of utmost urgency, like sickness or for food for the table.
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In our day, a family holiday was probably a stay at a government holiday chalet at Telok Paku (remember that beach?) or a drive upcountry to stay in shophouse hotels in Ipoh or Malacca. I gave tuition to augment my expenses at the university; few of us could afford to go abroad to study.
I bought a new dress only during Chinese New Year and Christmas and limited my outings to just one a week. Even then, we organised house parties. If there were dates, they were probably to the cinema, followed by supper at the Orchard Road carpark, which housed the best hawkers on the island. Few of us had a car: we took buses from place to place.
Today, I do not need to follow such strictures. Not that I’m sitting on a huge pile of money; rather, I look at the time I have left and work out the amount that I can spend every month, if I were to live for, say, another 10 years.
I do however, keep some aside for medical reasons. I’ve found that medical insurance is unreliable. (Upon reaching old age, premiums shoot up or, in some policies, coverage stops.) I decided to cash out my life insurance policies and placed the money instead into income funds that offer security and a small but steady return.
I tell my son that he does not have to worry about funding my old age, as I have made my own preparations. These savings will hopefully cover that period in future if I become incapacitated.
The other is a change of attitude towards spending, hard to inculcate in someone who’s been financially prepared and frugal all her life.
During my working life, I always saved a portion of my salary, just in case. I also budgeted for expenditure and invested a little, every year when bonus time came round.
SKI Club spending
Nowadays, I can spend and I should. I tell myself sternly that I cannot take my money with me when I die, so I’d better spend it while I can!
I have friends who now travel monthly, as they do not think they would be able to once they hit 80. Their travel bucket list sounds exotic but tiring: Komodo dragons in Indonesia, glacier walking in Switzerland, watching gorillas in Rwanda, anyone?
I am also aware that while Singapore boasts of its population living to a ripe old age, the quality of those years is less than optimal in many cases. Many spend their last few years sick in bed or sitting in wheelchairs.
Even if healthy, many just cannot change their spending patterns, for they resolutely want to leave some money to their children upon their death.
Like the old me, having been frugal all their lives, they will not buy a dress that is costly, in their terms; spend on meals that cost beyond a certain number or pay for self-improvement treatments even if they now have the time or money.
I have been able, belatedly, to toss aside such strictures. I now go for regular facials, massages, manicures, etc because I enjoy the pampering. More seriously, I am convinced that regular treatments, including physiotherapy sessions, would ensure that I can walk erect into old age.
On a less indulgent note, I also make it a point to give away what I don’t need: cash, if that is called for, but also possessions that I now don’t use.
I give away many kitchen appliances (that sous vide machine!) that I no longer use as my meals become smaller, simpler and less demanding in scope.
And yes, clothes that I’ve outgrown literally, sadly due to a spreading waistline, and books to the libraries. An aunt I know took giving to extremes, giving away large wads of cash every new year to everyone who visited her, never mind their age nor marital status. What a great idea that was!
Life is truly more focused, less complicated and happier once you join the SKI club!
