Inheritance After Retirement

C02

Under equal returns, no tax, no consumption, and free borrowing, the same family wealth results wherever the capital sits. Timing still changes what a young adult can do, because a transfer at 35 or 40 can meet a deposit, debt, education, or career constraint that a transfer at 70 or 85 arrives too late to change.

GSX:POP-008:C02 · Modelled · Conditional · moderate 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

A03Clean compounding caseIf parents and children earn the same return, pay no tax, never consume the asset, and can borrow freely, family wealth does not depend on which generation legally holds the capital.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

Registered supporting sources

Inheritance After Retirement · GSX:POP-008:PDF