Fri Oct 21 22:16:31 SAST 2016

young are saving more - research

By Penwell Dlamini | Jul 16, 2010 | COMMENTS [ 0 ]

SOUTH African households that take time to plan their finances are the ones that saved more, the Old Mutual Savings Monitor revealed yesterday.

The biannual survey was conducted by independent researcher Peppercorn Research among 1000 working metro households. It was a face to face interaction with LSM's one to 10.

One of the main findings was the 80 percent of the sample were on average saving the same when compared to a year ago, with only 17 percent saving more.

A massive 34 percent were saving less than a year ago and 49 percent the same.

Crispin Sonn, director of corporate affairs at Old Mutual, said a notable trend was that people with an upper lifestyle were saving a lot less than other groups, while lower lifestyle groups saved more than a year ago.

Sonn said the challenge was to spread the critical planning skill to a broader audience, to build a financially astute society.

"Our findings point out that people who plan ahead, even if they have debt, are managing to service debt and save," Sonn said.

"Planners are people who plan five to 10 years in advance."

He said the survey revealed that people had a hunger for savings knowledge.

"The key challenge is broadening the reach of experts, harnessing mass media and facilitating the right conversations," he said.

The research showed young people saved more and that single people were saving more that couples.

It showed people with no cards, car finance or home loans saved the same as those who had such debt.

"People were not saving more owing to too much mid to long term debt.

"On the positive side, consumers are servicing their debt, though at interest-bearing minimum levels."

"People are paying their loans but the problem is that they pay the minimum premium and are not willing to contribute any extra cash," Sonn said.


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