What is the great wealth transfer?
The Great Wealth Transfer refers to the largest movement of wealth between generations in history. An estimated $1.6 trillion is expected to change hands in New Zealand over the next 20 to 25 years, making it one of the most significant financial shifts many families will ever experience.
For some people, that wealth will come through an inheritance. For others, it’s already happening through helping children into their first home, supporting family members financially, passing on a business, or deciding what happens to everything they’ve spent a lifetime building.
The money is only part of the story. The bigger challenge is often knowing what conversations need to be had, what decisions need to be made, and whether the people involved are ready for what comes next.
What should families be thinking about?
Many people don’t realise there may be important financial, legal and practical considerations until they’re already facing them.
- Have you had conversations with family members?
- Are your wishes understood by the people who matter most?
- Do you have a current Will?
- Have you reviewed your Enduring Powers of Attorney?
- Would the people closest to you know what to do if something happened tomorrow?
- Is your wealth structured the way you intend?
Every situation is different
There is no one-size-fits-all approach. For some people, it’s about helping someone into their first home. For others, it may involve managing an inheritance, passing on a business, protecting retirement plans, or deciding how wealth should be distributed in the future.
At RIVAL Wealth, we help clients understand the financial implications of these decisions, explore their options, and put a plan in place that reflects their goals and circumstances. We help bring structure to what can otherwise feel complex, identify opportunities and risks that may not have been considered, and provide an objective perspective when important decisions need to be made.
Having a plan in place early can provide more options and greater certainty for everyone involved.
Common FAQs about the great wealth transfer
What is the great wealth transfer?
The Great Wealth Transfer refers to the movement of wealth between generations through inheritances, gifting, property, businesses, investments and other assets.
Is the great wealth transfer only about inheritance?
No. For many families, wealth is transferred well before an inheritance is received through helping children financially, contributing to house deposits, supporting family members, or transitioning a family business.
Why is the great wealth transfer important?
When should people start thinking about it?
Ideally, now. Many people don’t realise the transfer of wealth is already happening around them. The earlier you start the conversation, the more time you have to prepare for what comes next.
This information is of a general nature and is not intended as personalised financial advice. RIVAL Wealth is a Financial Advice Provider (FAP) licenced by the Financial Markets Authority to provide financial advice. Our disclosure document is located at rivalwealth.co.nz or a written copy is available on request
