The Great Wealth Transfer: Are Kiwi Families Ready?



In the next 10 to 20 years, we’re going to see a massive shift of assets from one generation to the next. This transition brings both opportunities and challenges, especially for Kiwi families who might not be ready for the complexities of inherited wealth.


The Inheritance Conundrum

Research shows that 90% of family wealth disappears by the third generation. It’s an eye-opening statistic that highlights a big problem: families often don’t plan or talk about passing on wealth between generations.

Many parents, trying to do the right thing, keep their finances private from their kids. They’re worried that talking about money might make their children feel entitled or less motivated. But this approach often backfires, leaving the next generation unprepared to handle sudden windfalls.

What happens? We see inheritors who are either too cautious, afraid to touch what they see as “not their money,” or they treat it like they’ve won the lottery, quickly spending resources meant to secure their family’s future.


Breaking the Cycle: The Power of Open Dialogue

So, how do we fix this? The key is open, honest communication and early education. Here’s what we’ve found works:

1. Start early: Get the next generation involved in money talks from a young age. You don’t need to share every detail, but help them understand financial responsibility. There’s a difference between clarity and transparency.

2. Share the journey: Help your children understand how your family’s wealth was created. Knowing the hard work and values behind the money often creates a sense of responsibility.

3. Clarify intentions: Be clear about how you hope the wealth will be used. Is it for supporting future generations? Funding education? Driving charitable efforts?

4. Educate on investments: Teach the basics of how investments work, what risk means, and what kind of returns to realistically expect.

5. Introduce key advisors: Let the next generation meet your financial team. This helps ensure a smoother transition and keeps your family’s financial strategy on track.


Looking Ahead: A Call to Action


The great wealth transfer is coming, whether we’re ready or not. For Kiwi families, it’s time to start having those important conversations about money, values, and legacy.

Think about this: Would you rather your children learn about managing wealth from you, or from tough experiences after you’re gone?

By taking action now, we can help ensure that the wealth transfer strengthens family bonds instead of straining them, and that the legacy you’ve worked hard to build continues to benefit future generations.

Are you ready for the great wealth transfer? What are you doing to secure your family’s financial legacy? Let’s talk about how to secure our families’ futures.

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