Khanyi Nzukuma, Chief Executive at Glacier by Sanlam
We are currently witnessing one of the most significant shifts in global finance: The Great Wealth Transfer.
Over the next two to three decades, trillions of dollars in assets will change hands from the baby boomer generation – those born in the 1940s and 1950s –, to Generation X and millennials. This is not just a trend; it’s a profound transformation of financial ownership, influence, and decision-making that presents both a challenge and a tremendous opportunity for financial advisers.
The baby boomer generation is often characterised by its high net worth. They accumulated wealth during decades of economic expansion, relatively stable employment, and high savings discipline. In South Africa, the accumulation of wealth also accelerated post-1994, following the lifting of sanctions and the subsequent economic participation of previously marginalised groups. As a result, there is a substantial pool of wealth that is now poised for transfer, and financial advisers will be central to guiding that process.
The generational shift – This isn’t just about moving money from parent to child. It’s about transferring wealth across generational, cultural, and even geographic divides. Many of today’s wealthy families have children living in multiple jurisdictions – Australia, Europe or North America – , each with its own legal, tax, and governance frameworks. This adds layers of complexity to estate planning, succession strategies, and intergenerational wealth preservation.
Adding to this complexity is the fact that the values, expectations, and decision-making styles of Generation X and millennials differ vastly from their predecessors. These younger generations are more tech-savvy, more independent in their financial decision-making, and more values-driven in their investment choices. They don’t just want to inherit wealth, they want to understand, influence, and manage it in line with their personal goals and worldviews.
This represents a major shift for advisers, many of whom have long-established relationships with the older generation. The challenge now is how to build trust and relevance with the next generation, often remotely, and often with different tools and engagement preferences.
South Africa’s unique dynamics – While we are a relatively small player in global markets, representing around 1% of the global equities market, South Africa’s wealthy families hold a significant amount of investable assets. In fact, around R1 trillion currently sits in local banks, held by high-net-worth individuals and families. At Glacier alone, we manage approximately R680 billion in assets, and across the broader wealth management sector, we see roughly R500 billion in new investments each year, with 70% of that sourced from pension fund withdrawals at retirement.
Importantly, about 30% of these flows are going offshore, a reflection of the need to hedge against domestic volatility and currency concentration. But this externalisation of wealth presents its own challenges. Families are navigating cross-border estate planning, tax implications in multiple countries, and the emotional complexity of managing family wealth across continents. In many cases, the adviser becomes a financial counsellor, helping to mediate relationships, establish governance structures, and ensure that wealth continues to serve the family’s evolving aspirations.
From product seller to family guide – What does this mean for advisers? Firstly, the role is evolving. It is no longer enough to be technically sound. Advisers must now understand family dynamics, cultural nuances, and global financial structures. This is where wealth platforms like Glacier come in. We don’t expect advisers to become tax experts in multiple jurisdictions. Instead, we provide the products, structures, and support to simplify the complexity.
Whether it’s an offshore endowment, an investment plan, or a tax-efficient wrapper, our solutions are designed with these multi-generational, cross-border dynamics in mind. We consider tax, estate, and succession implications up front, so advisers can focus on building relationships and trust.
Additionally, we offer tools for client engagement, consolidated reporting, and guidance from a team of highly qualified experts (CFAs, CFPs, tax specialists) who work hand-in-hand with advisers to design the right solutions.
The future is omnichannel and hyper-personal – This new generation of investors is not only tech-literate, but they are also digitally empowered. They research, compare, and even pre-select products before they speak to an adviser. Much like modern patients who visit their doctors after Googling their symptoms, today’s investors expect their financial partners to validate, not dictate, their decisions.
This calls for an omnichannel approach to advice, a hybrid between digital tools and human connection. Sometimes, clients want face-to-face meetings. Other times, they prefer to interact via an app or portal. The adviser of the future needs to be agile, responsive, and adaptive, meeting clients where they are, both emotionally and technologically.
We are already seeing the effects of the transfer. At Glacier, we receive between R70 to R90 billion annually in flows from retirement proceeds alone. These funds often become the foundation for legacy planning, discretionary investments, or offshore diversification, all of which require expert guidance and a multi-dimensional view of client needs.
As this transfer accelerates, the demand for advisers who can navigate both the technical and relational aspects of wealth will only grow. Those who embrace the opportunity, those who build bridges to the next generation, leverage platforms like ours, and shift their mindset from “planner” to “family guide”, will thrive.
The Great Wealth Transfer is not just about assets changing hands. It’s about values, vision, and leadership being passed down too. For the South African financial adviser, this is a once-in-a-generation opportunity to build deeper, more enduring relationships that span across generations, and across borders.
Glacier Financial Solutions (Pty) Ltd is a licensed financial services provider.
Sanlam Life Insurance Ltd is a licensed life insurer, financial services and registered credit provider (NCRCP43).