YOUNG South African professionals are not saving enough to be able to actively participate in the growth of the economy.
This emerged during a preview of the Old Mutual Savings Monitor to be released today.
Lynette Nicholson, head of research at Old Mutual, said it was becoming more crucial for young professionals to take the culture of saving seriously.
"Young people between the ages of 18 and 34 stand a good chance of saving more than an individual with a mortgage, car and children," Nicholson said.
She said 31percent of this age group were saving more in 2011 compared with last year.
She said that only 21percent of retail affluent, upper-income earners, earning more than R40000 a month, have provident funds.
Most of them still live with parents and have a lot of disposable income for other things.
Nicholson said of this upper-income group earners, 29percent were black and 60percent white.
About 19percent of the upper-income segment is self-employed.
The survey also revealed that having leftover money in a bank account was not an effective long-term saving as this did not make your money grow.
The upper-income segment also sees 80percent of that group having life assurance, 17percent having unit trusts and 15percent contributing to stokvels.
According to the last Old Mutual Monitor, only 37percent have provident funds, with only 21percent on medical aid.
Saving culture still low - study
YOUNG South African professionals are not saving enough to be able to actively participate in the growth of the economy.
This emerged during a preview of the Old Mutual Savings Monitor to be released today.
Lynette Nicholson, head of research at Old Mutual, said it was becoming more crucial for young professionals to take the culture of saving seriously.
"Young people between the ages of 18 and 34 stand a good chance of saving more than an individual with a mortgage, car and children," Nicholson said.
She said 31percent of this age group were saving more in 2011 compared with last year.
She said that only 21percent of retail affluent, upper-income earners, earning more than R40000 a month, have provident funds.
Most of them still live with parents and have a lot of disposable income for other things.
Nicholson said of this upper-income group earners, 29percent were black and 60percent white.
About 19percent of the upper-income segment is self-employed.
The survey also revealed that having leftover money in a bank account was not an effective long-term saving as this did not make your money grow.
The upper-income segment also sees 80percent of that group having life assurance, 17percent having unit trusts and 15percent contributing to stokvels.
According to the last Old Mutual Monitor, only 37percent have provident funds, with only 21percent on medical aid.
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