The Economics of Living Together

C02

Across the manuscript's three scenarios, earlier household combination still leaves the stronger position at 75. The lead is R11.287 million in the best case, R3.972 million in the average case, and R1.882 million in the worst case. In the worst case that lead only narrows two large funding gaps.

GSX:HH-001:C02 · Modelled · Conditional · high sensitivity · Version 1.0

Depends on

A01Two Gauteng earnersThe household is two adults in Gauteng with take-home pay of R30,000 and R20,000 a month. The results are combined household wealth, not each person's legal ownership.high sensitivity

A02Ten-year difference in household timingThe Early couple combines adequate households at 25. The Later couple combines them at 35. From 35 onward the model gives both the same housing arrangement, income, expenses, shocks, and retirement assumptions.high sensitivity

A04Surplus is investedThe model invests the available surplus. It does not spend that surplus on a higher lifestyle.high sensitivity

A05The relationship remains intactBoth relationships remain intact through the simulation. Separation, custody, maintenance, and a second replacement home are not given a numeric cost.high sensitivity

Modelled results cited

R01Average case, age 75, early consolidation minus later consolidationIn the average case, the Early household holds R3.972 million more combined wealth at 75 than the Later household, in constant 2026 rand.modelled

R03Best case and worst case at age 75At 75 the Early household's lead is R11.287 million in the best case and R1.882 million in the worst case. In the worst case both positions are large funding gaps: about -R16.346 million and -R18.228 million.modelled

Registered supporting sources

The Economics of Living Together · GSX:HH-001:PDF