By Henno Senekal

Blended families, where one or both partners have children from previous relationships or dependent parents merging into a new family unit, are becoming increasingly common in South Africa.

In fact, 48% of employed South Africans have financial dependents other than their children or spouse, according to the 2024 Old Mutual Saving and Investment Monitor, reflecting the diverse and complex family structures today.

These households require holistic financial planning to address their complex dynamics and ensure long-term stability and intergenerational financial well-being

Shared responsibilities, such as saving for children’s education needs, retirement planning for parents, and healthcare needs, require a holistic approach. This comprehensive planning is especially crucial in blended families, where financial strategies must accommodate different life stages.

Comprehensive financial planning goes beyond building wealth and ensures wealth is safeguarded at every turn. A holistic plan demands that every member of a blended family understands the potential challenges that life may throw their way — be it unexpected hospital bills, temporary work incapacities, critical illnesses, permanent disabilities, insufficient retirement funds, or even death.

In the intricate dynamics of blended families, planning isn’t just about the numbers; it’s about people. Emotions can run high, and differing expectations can create tension, often turning loved ones into adversaries. This is where the financial adviser steps in, not just as a planner but as a mediator and guide. The adviser is critical to uniting the family around a common goal, ensuring everyone’s voice is heard and respected.

The complexities of family life

Clear communication is vital in managing these complexities. Effective communication ensures everyone understands their roles and responsibilities, which is crucial when dealing with different financial priorities and obligations.

Blended families take various forms, including reconstituted families, where divorced or widowed individuals with children remarry or form new partnerships. Extended blended families may include grandparents, aunts, uncles, or cousins in the primary household.

A good adviser understands blended family dynamics and acts as an intermediary where necessary. Advisers are crucial in guiding families through the planning process, providing tools, resources, and tailored advice based on the family’s unique situation.

It is important to begin with clear financial goals to help families concentrate on their broader financial objectives. Starting with well-defined financial goals is crucial,” he says. “It helps families focus on what truly matters — preparing for the future, managing risks, and ensuring retirement readiness.

Intergenerational financial planning is important, which considers the financial well-being of future generations. By adopting this approach, blended families can ensure that their plans today will benefit their children and grandchildren, fostering long-term stability and security.

Family financial planning is more than the sum of its parts. It’s about creating a secure and prosperous future for everyone involved. With the right support, blended families can navigate their unique financial challenges and secure a stable financial future for all their members.

* Senekal is the distribution marketing manager at Old Mutual Personal Finance.

PERSONAL FINANCE