Over the past decade, a clear shift has occurred in the way families approach financial planning. More and more clients are choosing to involve their adult children—and, in some cases, even their grandchildren—in discussions that were once considered strictly private. This has given rise to what is often referred to as multi-generational financial planning: a more integrated, transparent approach that recognises the financial interdependence that now exists across generations.

In our experience, this form of planning is not driven by ideology, but by necessity. Rising living costs, increased longevity, complex family structures and underfunded retirements have made it increasingly difficult to plan in silos. When done well, multi-generational planning creates clarity, reduces misunderstandings and helps families preserve both wealth and relationships over the long term.

Integrated living and shared financial realities

Multi-generational living arrangements are becoming far more common in South Africa. Whether driven by affordability, safety concerns, or the need for childcare support, we regularly work with families where three generations live on the same property. Retired parents may build a cottage on an adult child’s property to reduce post-retirement costs, or younger families may move in with parents to share expenses and responsibilities.

While these arrangements can work exceptionally well from a lifestyle perspective, they inevitably raise financial questions. Who owns the property? Who funds the capital improvements? How are running costs shared, and what happens if circumstances change? These conversations often mark the first time that parents and adult children engage openly about their respective financial positions. From a planning perspective, this transparency is invaluable, as it allows decisions to be made with a clear understanding of affordability, risk and long-term sustainability.

Post-retirement living, care and vulnerability

Many retirees are discovering that their expectations around retirement living no longer align with reality. Quality retirement facilities are expensive, and assisted living or frail care can place a significant strain on even well-structured retirement plans. Added to this are concerns around personal safety and the emotional impact of ageing in isolation.

As clients grow older, we often see adult children becoming more involved—initially informally, and later more actively—in decisions around care, medical funding and security. Increased longevity means that retirees may live for many years with chronic conditions that require ongoing financial and emotional support. Multi-generational planning acknowledges this reality and allows families to plan proactively, rather than reacting in crisis mode when care needs escalate.

Financial pressure on the middle generation

It is not uncommon for adult children to face their own financial constraints and turn to their parents for assistance. Rising property prices, limited access to credit and the cost of starting a business often result in retirees being asked to provide loans or guarantees. While many parents are eager to help, these arrangements can be risky if they are entered into without proper planning.

One of the most concerning assumptions we encounter is that parents are “financially fine” simply because they are retired. In reality, lending retirement capital—whether for a home deposit or a business venture—can materially undermine long-term financial security if repayment does not occur as planned. In our experience, these transactions should never take place without full disclosure of the retiree’s financial position, a clear understanding of the risks involved, and, ideally, formal loan agreements that protect both parties.

The reality of underfunded retirement

Despite increased awareness, retirement underfunding remains a significant challenge. Longevity risk, poor investment decisions and exposure to scams have left many retirees with insufficient capital to sustain their desired standard of living. Sadly, adult children—particularly those living or working abroad—are often unaware of their parents’ financial vulnerability until it becomes acute.

We frequently work with families where this reality only emerges at a time when the middle generation is already under pressure, funding their own children’s education while trying to save for retirement. Multi-generational planning creates an opportunity to surface these risks earlier, allowing families to explore solutions collaboratively rather than being forced into difficult decisions later in life.

Mental incapacity, illness and special needs planning

Few events highlight the importance of multi-generational planning as starkly as the onset of mental incapacity or terminal illness. Conditions such as dementia and Alzheimer’s disease require careful consideration of who will manage financial affairs, make healthcare decisions and oversee the administration of the estate when the individual is no longer able to do so.

From a practical perspective, planning must take place while the individual still has capacity to sign essential documents, including a valid Will, and advance healthcare directives. Involving adult children at this stage ensures that everyone understands the structure that has been put in place and reduces the likelihood of disputes or delays later on.

Navigating complex family dynamics

Blended families, second marriages and extended family arrangements add layers of complexity to financial and estate planning. In many cases, disputes arise not because of unfair outcomes but because expectations were never aligned with reality. We often see situations where heirs are shocked by the contents of a Will, resulting in resentment and fractured relationships.

While a Will is a powerful legal document, it is not a substitute for communication. In our experience, involving intended heirs in discussions around major decisions—such as selling the family home or restructuring an estate—can significantly reduce the risk of conflict. Multi-generational estate planning allows beneficiaries to ask questions and gain clarity while the testator is still alive, rather than being left to interpret intentions after the fact.

Business and philanthropic succession

For business owners, succession planning is rarely just a financial exercise. Family-owned businesses often carry deep emotional significance, and decisions around succession can be highly charged. Effective planning requires honest conversations about capability, commitment and shared values, not merely the transfer of shares.

We encourage clients to think beyond ownership and consider how their values, work ethic and philanthropic intentions will be carried forward. Involving adult children—and, where appropriate, grandchildren—early in the process increases the likelihood of continuity and long-term sustainability, while also strengthening family bonds.

Having advised families through both smooth transitions and deeply challenging circumstances, we believe that the most successful outcomes are achieved when planning extends beyond the individual. A Will may speak after death, but there is no voice more powerful than the one you use while you are still alive.

Have a fantastic day.

Sue