Six out of ten retired people say they are having the time of their lives, collectively spending £1.5 billion a month on travel, meals out and hobbies.

About 50 per cent of people aged over 50 also say they have no intention of holding back during retirement, even if this means spending their children's inheritance, according to Sainsbury's Bank.

The shift is part of a new trend emerging among well-off retirees dubbed SKIing - or Spending the Kids' Inheritance - where people enjoy their hard-earned cash themselves rather than leaving it to their children when they die.

Four out of ten people say they had fulfilled life-long plans or ambitions since they gave up work, with 28 per cent travelling, 18 per cent starting new hobbies and three per cent trying adventure activities such as white water rafting.

Retired people collectively spend an average of £535 million a month on travel, while splashing out £344 million on meals out, £332 million on presents for themselves or their loved ones and £310 million paying for their hobbies.

But Sainsbury's Bank warned this trend meant young people would have to begin saving for retirement even earlier.

Mairi Hutchison, long-term savings manager at the bank, said: "It is clear that these 'party pensioners' are having the time of their lives but the younger generation will generally have less generous company and state pensions to look forward to.

"Unless they start saving more now they could find retirement very difficult and be forced to work well beyond 65.

"We estimate that, collectively, the working population needs to save an extra £31 billion a year."

Wednesday October 29, 2003