Sydney Sekese, CFP® professional and member of the Financial Planning Institute
July marks National Savings Month in South Africa—a time to reflect on our financial habits, reset our goals, and reimagine our futures. It’s also a moment to consider a growing but often overlooked phenomenon: inheritance. While it may sound like a relic of a bygone era, inheritance is becoming a powerful force in shaping wealth across generations.
Globally, the numbers are staggering. In 2025, people across the developed world are expected to inherit a combined $6 trillion—roughly 10% of GDP. In France, bequests have doubled as a share of national output since the 1960s. Germany has seen a threefold increase since the 1970s. Italy’s inheritances now represent a fifth of its GDP. These figures, highlighted by Barry Ritholtz, founder of Ritholtz Wealth Management, signal a seismic shift in how wealth is transferred and preserved.
But what does this mean for South Africa?
While our economic landscape differs, the principle remains: inheritance is not just a windfall—it’s a responsibility. With intergenerational wealth transfers on the rise, South Africans must be prepared to manage these assets wisely. Whether it’s property, cash, or shares, the question is no longer if you’ll inherit, but how you’ll invest what you do.
The South African Context
South Africa faces unique challenges: high unemployment, low savings rates, and a legacy of inequality. Yet, we also have a growing middle class, an expanding financial literacy movement, and a vibrant investment ecosystem. As more families begin to accumulate and pass on wealth, the opportunity to reshape financial futures becomes real.
July’s Savings Month is the perfect time to start this conversation. It’s not just about cutting costs or stashing cash—it’s about building a mindset of stewardship. Inherited wealth, if managed well, can fund education, seed businesses, support retirement, and uplift communities.
How to Invest Your Inheritance Wisely
- Pause and Plan: Don’t rush. Take time to understand what you’ve inherited and seek professional advice.
- Diversify: Consider a mix of asset classes—property, equities, bonds, and alternative investments like private equity or hedge funds.
- Think Long-Term: Avoid short-term speculation. Focus on sustainable growth and income generation.
- Protect Your Wealth: Use trusts, wills, and insurance to safeguard your assets for future generations.
- Give Back: Consider philanthropy or impact investing to create social value alongside financial returns.
A Call to Action
Inheritance is not just a personal gain—it’s a societal opportunity. As South Africans, we have the chance to redefine wealth not as something to be consumed, but as something to be cultivated. Let July be more than a savings campaign. Let it be a turning point—a moment where we commit to transforming windfalls into legacies.
