Guiding consumers since 2009

South Africans starting to show signs of saving

By Staff Writer
According to the latest report released by Old Mutual Savings Monitor, South Africans are finally starting to show signs of saving more and improving their future planning. |

The report was released on Tuesday and indicated that the South African economy was on the slow road to recovery but South Africans are still saving too little.

"National budgets were under heavy pressure worldwide  and people will have to accept that governments will not be able to lend much support during their retirement years," said Rian le Roux, Old Mutual Investment Group economist.

Further strain was put on retirement savings by poorly performing markets, early retirement and low savings, which showed that many people were inadequately provided for.

"Their savings efforts will have to treble or quadruple in the effort to put sufficient money aside for retirement to avoid becoming a burden on the state or on their grandchildren."

Lynette Nicholson, head of research at Old Mutual, noted that people who planned ahead, even if they had debt, were managing to service debt better and save more, compared with those who did not plan.

"Improving understanding of the importance of money management and long-term planning is crucial to fostering a positive savings culture," she said.

More than 20% of South Africans fall into the "sandwich generation" which supports both their children and their parents.

"The sandwich generation is the generation of people squeezed between their own children and their ageing parents, and supporting both of them," Old Mutual said.

This is much higher than first world economies like the USA and Canada, where around 14% carry this burden, with the UK coming in at 10% and Japan 6%.

In 1990, less than 33% of young adults aged 18 to 24 years lived with their parents and the study by Old Mutual showed that currently, almost 70% of South Africans aged 18 to 24 live at home.

"The figure for those aged 25 to 34 is a staggering 45%."

Recent Articles

Featured This is why you should ask your medical scheme for an annual claims statement

Even with a strict budget, a lot can happen in a year and you may lose track of your medical expenses, especially the costs that you cover out-of-pocket. It’s important to regularly assess your medical aid or hospital plan contribution.

Make rewards programmes work for you

Many retailers and financial service providers have introduced rewards programmes, or loyalty programmes, to retain their customers and make them feel appreciated. These programmes can help you save money, but you have to know how to make them work for you.

 

Top 5 things to consider before taking on further credit

Nowadays, the process of attaining credit has become easier and faster. Although applying for, and receiving cash on the same day may excite potential lenders, it doesn’t come without serious repercussions if you’re not wise. 

These factors will fluctuate your car insurance excess

When you take out car insurance, your monthly premium is a given. However, you may also need to pay an excess amount if you claim from your policy. But which factors may increase your excess, and how can you bring it down?

Deals

Get 25% off your stay at Monte Vista Boutique Hotel

Price: Available on request
When: Until 31 January 2021
Where: Montagu

Luxury Spa Package Special for R449 at Aurora

Price: R449
When: Until 31 January 2021
Where: Cape Town

Oyster and Champagne Special at Blowfish Restaurant | JustMoney

Price: R129
When: Daily
Where: Cape Town


Latest Guide

Guide to debt rehabilitation solutions