Lifetime wealth

Related questions

• What is the lifetime household comparison between living together and maintaining separate households?
• How does the timing of cohabitation change the cost of living and saving?
• How does living with parents during the first years of employment compare with paying rent for a separate household?
• What is the lifetime wealth comparison between delaying car ownership and buying a car at first employment?
• How does the age at which inheritance arrives change its economic value?
• What happens to inheritance when retirement and longer lives move bequests later?
• How does inherited property geography relate to South Africa's racial wealth gap?
• How do the type, location, and tenure of inherited property carry advantage across generations?

Relevant claims

• GSX:HH-001: For two Gauteng adults bringing home R30,000 and R20,000 a month, combining households at 25 rather than 35 leaves about R3.972 million more combined household wealth at 75 in the average scenario, in constant 2026 rand. The direct living-cost saving is about R1.059 million. The larger gap comes from investing that earlier saving and from avoiding expensive negative balances.
• GSX:HH-002: In the central middle-salary Johannesburg scenario, living in the family home and delaying a car purchase for three years creates R602,000 more modelled net capital at age 25, and R3.32 million more modelled wealth at age 60, than moving out and financing a car immediately. The age-60 figure holds when the gap is preserved on the manuscript's common post-25 path.
• GSX:POP-008: 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:WPL-001: For matched descendants, the central scenario produces median marketable net worth after forty years of R3.67 million with a titled township home and R5.24 million with a middle-value suburban home. The difference is R1.57 million, in constant 2024 rand.

Major assumptions

• Average return and starting pay · high sensitivity · GSX:POP-008
• Average-case returns and costs · high sensitivity · GSX:HH-001
• Clean compounding case · high sensitivity · GSX:POP-008
• Common path after age 25 · high sensitivity · GSX:HH-002
• Contribution while living at home · high sensitivity · GSX:HH-002
• Hybrid transport while the car is delayed · high sensitivity · GSX:HH-002
• Johannesburg housing bundle · high sensitivity · GSX:HH-002
• Matched descendants · high sensitivity · GSX:WPL-001

Datasets

• The Economics of Living Together · GSX:HH-001
• The First Three Years Advantage · GSX:HH-002
• Inheritance After Retirement · GSX:POP-008
• Inherited Geography · GSX:WPL-001