The recently published Wealth Worries Survey by Vasa says the average middle class South African household spends over R7,000 each month paying off debt, while more than half of South Africans say they will never be financially free. That’s a sad state of affairs.
The Visa report surveyed 2 000 people across the country. 52% said they would never be financially free, 46% thought it was feasible and only 2% said they already are. Of those who think they will one day be financially free, 68% said they would only achieve this after 50.
30% of respondents said debt levels are the biggest threat to their wealth, with 89% saying they pay on average R7,283 per month to service their debt.
Looking at retirement, 13% said they are considering retiring overseas with Europe and the UK top choices (let’s hope they have UK or EU passports). The age of 60 is the most popular for retirement plans, but sadly 41% said they will never be able to retire.
20% said they had no investments whatsoever, while 19% said they had no retirement savings.
Issues that needs to be resolved urgently in SA? Political leadership (27%), job creation (26%), crime (17%,) poverty (13%), education (12%), infrastructure (3%) and better race relations (3%).
Despite their debt burden, the survey reveals that South Africans give to those less fortunate, with 70% saying they give to charity. Those who do so, give on average R5,843 annually.
Observing these findings from abroad, it seems strange that no-one mentions the massive amounts average households have to spend on security systems, armed response, house and car insurance and private medical care. These are things most expats never have to worry about, but seems to be taken for granted as “essentials” in SA.
