Inheritance After Retirement

C01

If R1 million remains invested until age 100 at 4 percent above inflation, a living transfer at 35 becomes R12.80 million, an inheritance at 40 becomes R10.52 million, at 55 R5.84 million, at 70 R3.24 million, and at 85 R1.80 million, in constant 2026 rand.

GSX:POP-008:C01 · Modelled · Conditional · high sensitivity · Version 1.0

Depends on

A01Same R1 million, different arrival ageThe model compares one R1 million transfer received at 40, 55, 70, or 85, plus a living transfer at 35. If it stays invested until age 100, only the arrival age and the real return change. The illustrated values exclude tax, fees, and consumption.high sensitivity

A02Average return and starting payThe recipient starts work at 25 on R30,000 a month. Real pay grows by 1.2 percent a year. Capital earns 4 percent above inflation in the average case. Values are constant 2026 rand.high sensitivity

Modelled results cited

R01Average 4 percent real return, no tax, fees, or consumptionAt 4 percent real, R1 million kept invested until age 100 becomes R12.80 million if received at 35, R10.52 million at 40, R5.84 million at 55, R3.24 million at 70, and R1.80 million at 85.modelled

R02Return sensitivity at ages 40 and 85The same inheritance received at 40 is worth R3.28 million by age 100 at 2 percent real and R32.99 million at 6 percent real. Received at 85, those three returns narrow to R1.35 million, R1.80 million, and R2.40 million.modelled

Registered supporting sources

Inheritance After Retirement · GSX:POP-008:PDF