SA households lost nearly half a trillion rand in 2018 - survey

In 2018, about 6.3% of households’ real net wealth was wiped out, according to the Momentum/Unisa South African Household Index.

Momentum researcher and economist Johann van Tonder explains the results and how to protect your net wealth.

He attributes the loss to two factors. Firstly, an increase of R21.2 billion in the real value of household liabilities and secondly, a sharp reduction of R428.6 billion in the real value of assets, mostly consisting of the value of retirement savings.

Read: How to protect your money if Moody’s downgrades us to junk on Friday

A large portion of the losses can't be attributed to what happened in South Africa. A lot of it has to do with what happened in the US and China - the trade war between the two countries.

Johann van Tonder, Researcher and economist - Momentum

That just shows you how vulnerable our economy is to what is happening in the rest of the world.

Johann van Tonder, Researcher and economist - Momentum

If you do have savings in your pension fund that can assist you when you have an emergency; that will increase your net wealth.

Johann van Tonder, Researcher and economist - Momentum

To hear more analysis and advice, take a listen to the rest of the conversation below:


Recommended

by NEWSROOM AI
Read More
'The accumulation of money cannot be the goal in and of itself'

'The accumulation of money cannot be the goal in and of itself'

Wealthwoke's Elian Wiener shares his life's journey with money and rediscovering that true wealth goes beyond money.

How to create wealth with a small business

How to create wealth with a small business

A business can be built to either make money or create wealth, or both, says small business guru Pavlo Phitidis.

How to have more money, meaning and happiness in life

How to have more money, meaning and happiness in life

Paul Theron, MD at Vestact, reviews “The Geometry of Wealth: How to Shape a Life of Money and Meaning” by Brian Portnoy.

What would happen if Government just gave everyone free money?

What would happen if Government just gave everyone free money?

Finland has ended a trial to see what impact a basic income would have on unemployment - this is what it found.

'We emphatically reject the approach to Black Economic Empowerment' says the DA

'We emphatically reject the approach to Black Economic Empowerment' says the DA

The party says they will approach BEE by codifying specific metrics which will help signify successful redress.

Why you should read the Bill and Melinda Gates Foundation annual letter

Why you should read the Bill and Melinda Gates Foundation annual letter

For the last decade, the letter has tracked how the world has been improving.

Business doesn't buy into transformation says Business Leadership SA

Business doesn't buy into transformation says Business Leadership SA

Eusebius McKaiser discusses how the country can achieve greater levels of justice and equality within the South African economy. 

3 risks to your retirement savings (and how to mitigate each of them)

3 risks to your retirement savings (and how to mitigate each of them)

Only 5% of South African retirement fund members will retire comfortably. Bruce Whitfield interviews advisor Warren Ingram.

How the world’s richest people made their breathtaking fortunes

How the world’s richest people made their breathtaking fortunes

(A hint: for most, it wasn't in tech.) Bruce Whitfield interviews Warren Ingram, Galileo Capital Personal Financial Advisor.

How to retire while you’re still young(ish)

How to retire while you’re still young(ish)

If you do things differently, it’s possible stop working far earlier than you ever thought possible, says Warren Ingram.

Popular articles
Outrage as pastor tells students gay people are 'as bad as Hitler'

Outrage as pastor tells students gay people are 'as bad as Hitler'

Students at De Kuilen High are being offered counselling after being told by Pickard Henn that gay people are going to hell.

47% probability of the rand crashing in next 12 months - Rand Merchant Bank

47% probability of the rand crashing in next 12 months - Rand Merchant Bank

The writing is probably on the wall for the resurgent rand. Bruce Whitfield interviews John Cairns, a Strategist at RMB.

'Old Mutual claimed they were the cheapest. They were the most expensive!'

'Old Mutual claimed they were the cheapest. They were the most expensive!'

Personal Finance's retired founding editor Bruce Cameron on his attitude toward money (hopes and fears, successes and failures...)

'It's about time too!' DJ Fresh on his new 947 gig  #FreshOn947

'It's about time too!' DJ Fresh on his new 947 gig #FreshOn947

The news that DJ Fresh would be joining 947 was dominating on social media on Monday with the hashtag #Freshon97

Vaginal ring effective in HIV prevention, study shows

Vaginal ring effective in HIV prevention, study shows

The ring offers an alternative to taking an oral pill every day and needs replacing just once a month.

Brand new business hub to help startups get off the ground  - CPT

Brand new business hub to help startups get off the ground - CPT

It's being dubbed a 'one-stop-shop' for entrepreneurs and startups looking for opportunities in the Mother City.

'A lot of people may have wanted him dead.'  - Who killed Mark Batchelor?

'A lot of people may have wanted him dead.' - Who killed Mark Batchelor?

A Sunday newspaper report has suggested the soccer ace's death may have been linked to a missing stash of cocaine.

Paying off your credit card every month to avoid interest? The banks are sneaky…

Paying off your credit card every month to avoid interest? The banks are sneaky…

Consumer journalist Wendy Knowler warns prudent credit card holders to keep tabs on their banks. In this case, it’s FNB.