Transcription
Savings & Investment MonitorJuly 2021
Sampling and Methodology Annual SurveyMetro WorkingSouth AfricansOnline survey(7 main metros)Personal MonthlyIncome :R8k Fieldwork dates: 10 May – 3 June 2021Saving & InvestmentBehaviours & Attitudes1 530 respondentsWeighted to theworking SApopulation
Generation Definitions Gen Z:18 – 25 yearsGen Y:26 – 40 yearsGen X:41 – 56 yearsBaby Boomers:57 years and older
Key themes Sentiment about the country Current financial situation Dependency Financial priorities and behaviour changes Debt Informal savings & Stokvels Sources of income and introducing “Poly-Jobbers” Pre-retirees New ways of entertainment
Sentiment about the country
Confidence in the SA Economy “I feel confident about the South African economy” (% Strongly 34%2020202131%2021(unrest)
The state of the country
Government’s response to Covid-19 “I am satisfied with the way the Government is handling the Covid-19situation”2020202156%44%
CLICK TO EDITCurrent financial situationMASTER TITLE STYLE
Income status Some recovery in incomes levels, but still over a third earning less than before Covid-19July2020July2021Positive impact – I am earning more than before6%13%No impact as yet – I am earning the same asbefore41%49%Some negative impact – I am earning a bitless/have taken a small salary reduction/reducedhours28%Significant negative impact – I am earningsignificantly less/big salary or earnings reduction25%Impact53%26%12%38%
Satisfaction with financial situation Mean Score out of 1
Financial stress levels 02160%50%40%50%50%30%20%10%14%12%0%2018No stress2019Low stressHigh stressOverwhelming stress56%High/overwhelmingstress
If lost job, funds would last for 2021201934%36%17%1 month or less2 months13%3 months202020211 month or less28%40%34%2 months17%15%13%3 months17%17%17%More than 3months38%27%36%More than 3 months
Financial outlook for next 6 months 100%90%16%12%12%9%21%80%30%70%60%45%43%47%26%Baby Boomers (57 years )are least optimistic: 39%(Improve)50%40%30%20%Gen Z (18 – 25 years)are most optimistic: eStay the same2020Get worse2021
Voxpop - Kyle
Dependency
Adult dependents “1 in 2 have at least one adult 52015201620172018201920202021
Old Mutual Sandwich Generation Indicator 50%42%45%40%35%30%27%31%28%31%43%34%Gen Y (26 – 40 years)highest % in the 2018201920202021
Financial priorities andchanges in behaviour
A stark realization 87%“Covid-19 has made me changethe way I think about andmanage my finances”68% claim to have started saving on a regular basis
Financial Priorities 2021202070%Income/Job security65%67%Cutting expenses62%40%Paying 26%
Additional priority post unrestProtection1 in 4assessing their insurance cover
Income & expense management 69%Used loyaltypoints/rewards57%PaymentHolidays36%35%Cut down ondomestic helpMoved tocheaper cellphone or dataoption39%Switched tocheapersupermarketbrands31%Given up gymsubscription39%Cheaper DSTV/streamingoptions12%Movedchildren to lessexpensiveschoolsAnd 1 in 3 have “combined homes”
Savings/Investment horizons ”Short-Term”2021201344%From a few monthsto a year64%28%1 – 3 years12%23%1 – 5 years9%5%5 years2%“Short-term/immediately accessible” 13%
The not so good behaviours 201920202021 Fallen behind on household bills24%37%34% Had to borrow from family/friends38%39%44% Cashed in savings/investment policiesN/A23%31% Cut down/cancelled car/household insurance ormoved to cheaper optionsN/AN/A25% Cut down/cancelled medical aid cover or moved tocheaper optionsN/AN/A20%
Debt
Personal loans 21%15%17%155Highest for Gen Y(26 – 40 years)& Gen X:(41 – 56 years)10%6%2017From Financial Institution9%12%21%14%5%4%201819%2019From microlender20202021From family/friendsHighest for Gen Z(18 – 25 years)29%
Debt repayment 201920202021 Fallen behind on credit card payments5%28%27% Fallen behind on store card/account payments20%30%28% Fallen behind on rent or home loan payments7%26%19%
Informal savings &Stokvels
Informal savings 020152016Informal Savings2017Stokvels20182019Burial Societies20202021Grocery SchemesFiltered on Black respondents
Number of stokvels & monthly contribution Belong to more than 1 stokvel:2021:53%Average Monthly 52018R9842017R9502016R9812015050010001500
Stokvels PurposeGroceries62%End of year expenses60%School fees/education30%To buy to property26%Travel/Holiday25%Weddings/other big events17%Invest in the stock exchange14%To buy livestock13%To buy cleaning/sanitizing products12%Gen Y(26 – 40 years)32%
Voxpop - Moneri
Sources of income&Poly-Jobbers
Introducing the Poly-Jobbers2017:2021:Have a singlesource of income63%53%More than 1source: formal13%37%More than 1source: informal(Slashers)24%20%
Poly-Jobbers by Generation Gen Z18 – 25 yearsGen Y26 – 40 yearsGen X41 – 56 years66%54%36%Baby Boomers57 years 26%
What are the Poly-Jobbers doing ?
Voxpop - Nareadi
Pre-Retirees
Pre-retirees ”The best laid plans ”Those ages 50 years47%Retirement plans/finances havebeen affected by Covid-19“Have had to dip into retirementsavings/used up all/a lot of retirementsavings”16%“Have been unable to makecontributions due to reducedincome/losing job”16%
Entertainment
Ways of entertaining at home Watching movies, series, videosReadingCooking and BakingOnline chatting with 1%51%51%Learning something new/upskillingGardeningGamingBoard gamesArts and CraftsAttending live concerts/eventsWatch parties (live chatting while watching movies/shows together)Virtual tours44%43%41%33%23%19%17%16%
New learning/skills New academic course53% How to cook/bake47% How to do home repairs44% How to take care of garden37% How to do basic car repairs29% A new language23% A new sport/exercise23% How to play a musical instrument 20%IncomeearningpotentialCostsavingpotential
THANK YOU
Income status Impact July 2020 July 2021 Positive impact -I am earning more than before 6% 13% No impact as yet -I am earning the same as before 41% 49% Some negative impact -I am earning a bit less/have taken a small salary reduction/reduced
