Cape Town – Insurance company 1Life Generational Wealth Survey has revealed that 88% of its respondents in a recent survey have cut down on unnecessary spending while over 90% of participants indicated that they have looked at ways to save for tougher times.
With the current economic trends in the country not having the brightest outlook due to factors such load shedding crime, etc, consumers seem to be looking to prioritise financial planning through avenues such as insurance cover and investments – an increase of 12% on 1life’s previous year’s survey.
The respondents have cut down on things like family leisure trips, eating out and buying expensive clothes. Some said they are now actively saving for emergencies to secure their families’ financial future.
“While not all respondents are saving in the traditional sense, it is encouraging to see through our results that people are making sure – now more than before – that they have some sort of start to building their wealth,” said Senior Manager at 1Life Insurance, Brina Biggs said during an interview on eNCA.
“Some have even opted for using 2-litre bottles as piggy banks, joining stokvels, as well as starting grocery schemes.”
According to Stats SA, annual consumer inflation reached another 13-year high, increasing to 7.8% in July from 7.4% in June 2022.
“The impact of Covid-19 on finances still lingers for many consumers, not to mention the reality of how quickly things can change when we lose loved ones. For many South Africans this level of vulnerability has spurred them into looking for means to save for tougher times through avenues such as insurance cover and investments,” Biggs said.
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Compiled by Junaid Benjamin