PMG Funds investor relationships manager, Rory Diver, looks at how the question has shifted from “how do I grow my wealth?” to “how can I make my wealth work for me?”
Over the past few decades, the focus for many investors has been on building and preserving wealth. But as one generation begins to transition into retirement, the conversation is changing.
PMG manages one of New Zealand’s most diverse portfolios of commercial property funds, and this is a conversation we’re having more often with our investors. They’re not just thinking about what their portfolio looks like today, but how it will serve the next generation, and whether their families are equipped to manage it.
Inheritance and legacy
New Zealand is in the early stages of the great Kiwi wealth transfer, with an estimated $1.6 trillion1 expected to move between generations over the coming decades. The real challenge isn’t the transfer itself, but what happens after.
Passing on wealth is easy. Passing on the knowledge and discipline that built it is the hard part. Without that, even the best investment can become a burden instead of a benefit.
Why financial literacy matters
PMG Funds has long recognised the importance of financial education in securing long-term prosperity. Through the PMG Charitable Trust and its partnership with Life Education Trust, PMG helped create the SMART$ Online programme to teach young New Zealanders the basics of money management – from saving and spending to understanding investment risk.
Financial literacy isn’t just about knowing the numbers. It’s about building confidence. When people understand how cash works, the risk-return balance and why diversification matters, they can make better choices. And that’s what preserves wealth across generations.
Many of today’s retirees built their wealth through decades of consistent effort and prudent decisions. That experience can’t be inherited, but it can be shared. The families that do this well start the conversation early, and they include their children in discussions about investments, structure and long-term goals.
Planning the handover
Investors approaching retirement should take a proactive approach to succession and wealth management.
- Start the conversation early: Transparency reduces tension. It also gives your family time to learn.
- Use professional structures: Funds like those managed by PMG can help simplify and diversify portfolios, ensuring assets are well-managed for the long term.
- Invest in education: Encourage your children or grandchildren to understand money, not just spend it.
- Rely on expertise: Engage with specialist legal, accounting and investment advisory experience before making investment decisions.
Looking forward
Ultimately, the most successful wealth transfers are built on communication and capability, not just capital.
Legacy isn’t about how much you leave behind. It’s about what your family does with it. Financial literacy is the bridge between good fortune and good outcomes, and that’s what turns inheritance into lasting impact.
For investors seeking to turn that understanding into action, education and informed decision-making are important, particularly in commercial property.
Commercial property remains one of New Zealand’s most reliable long-term asset classes, but it’s not always well understood. That’s why we’ve created the Commercial Property Investment Guide to help investors understand the fundamentals, from market drivers and risk to structure and performance.
The free guide provides practical insights into how commercial property funds work, what to look for in an investment partner, and how to align property investments with long-term financial goals.
Education empowers better decisions. And better decisions build stronger legacies.
1 According to research from Te Motu – The Economic and Public Policy Research Institute (Victoria University of Wellington), around $1.6 trillion in wealth is expected to be transferred between generations in New Zealand over the next two decades.
Disclaimer: The information in this article is of a general nature and was current as at November 2025. It is not intended to be regulated financial advice for the purpose of the Financial Markets Conduct Act 2013 and does not take your individual circumstances and financial situation into account. As with any investment, commercial property carries risks, including the risk of loss of capital. Past performance is not a guarantee of future results. PMG does not provide financial advice about whether an investment in one of its funds is right for you. Please seek advice from a licensed financial advice provider before making any investment decisions.
Future-proofing your wealth starts with making informed investment decisions. Download PMG’s free Commercial Property Investment Guide.
