The Science Of ... , Evergreen Content

Why we save (or don’t save) and what we're cutting back on (it's NOT Dstv!)

People are cutting back on holidays, entertainment, clothes and shoes as well as beauty and hair. They’re also cutting back on armed response.

Lynette Nicholson

People aren’t cutting back on DSTV and M-Net.

Lynette Nicholson

It’s not only black youth that take care of their parents. It’s becoming universal in South Africa.

Lynette Nicholson

The Money Show’s Bruce Whitfield interviewed Old Mutual Research Manager Lynette Nicholson for his weekly “The Science Of” feature.

Nicholson discussed the science of our savings behaviour.

Scroll down for quotes from the audio below.

We estimate R50 billion are in stokvels.

Lynette Nicholson

We see a large decline in people helping family.

Lynette Nicholson

Contractual savings have a better result.

Lynette Nicholson

About 40% of working urbanites don’t have a pension fund or retirement annuity.

Lynette Nicholson

South Africans under 30 – about 75% of them – expect they’ll have to take care of someone in future.

Lynette Nicholson

South Africans want instant gratification.

Lynette Nicholson

How early you start saving is key.

Lynette Nicholson

Generations Z is saving for the latest electronic device. The mind-set is ‘I want the best now’.

Lynette Nicholson

6% of South Africans can retire comfortably.

Lynette Nicholson

You don’t have control over the markets. But you do have control over how much you save and for how long you save.

Lynette Nicholson

Fewer households are saving.

Lynette Nicholson

Click here (then“like” the page) to follow Bruce on Facebook.

Enter your email address in the form below to receive a newsletter containing the seven most-read articles of the week from Bruce Whitfield’s The Money Show every Friday morning in your inbox.

Subscribe to our Business Wrap Newsletter

Article brought to us by Old Mutual.

702 welcomes all comments that are constructive, contribute to discussions in a meaningful manner and take stories forward.

However, we will NOT condone the following:

  • Racism (including offensive comments based on ethnicity and nationality)
  • Sexism
  • Homophobia
  • Religious intolerance
  • Cyber bullying
  • Hate speech
  • Derogatory language
  • Comments inciting violence.

We ask that your comments remain relevant to the articles they appear on and do not include general banter or conversation as this dilutes the effectiveness of the comments section.

We strive to make the 702 community a safe and welcoming space for all.

702 reserves the right to: 1) remove any comments that do not follow the above guidelines; and, 2) ban users who repeatedly infringe the rules.

Should you find any comments upsetting or offensive you can also flag them and we will assess it against our guidelines.

702 is constantly reviewing its comments policy in order to create an environment conducive to constructive conversations.

Read More
How saving can make South Africa rich

How saving can make South Africa rich

Bruce Whitfield interviews Dr Adrian Saville, Professor in Economics at Gibs and Chief Strategist at Citadel.

How I manage to invest a third of my income (despite earning peanuts)

How I manage to invest a third of my income (despite earning peanuts)

I earn peanuts, yet I’m slowly (but surely!) on my way towards never having to work for money ever again in my life.

How investing a third of my salary every month is making me rich (and free!)

How investing a third of my salary every month is making me rich (and free!)

A supersaver explains how she managed to invest R2.6 million and turn it into a whopping R3.7 million.

What happens to your Retirement Annuity if your fund manager goes bust?

What happens to your Retirement Annuity if your fund manager goes bust?

Fund managers do from time to time go bankrupt. Here’s what’ll happen to your Retirement Annuity if yours does…

5 things you must do now if you plan on retiring in roughly 10 years

5 things you must do now if you plan on retiring in roughly 10 years

Warren Ingram, Financial Advisor at Galileo Capital, has these tips for anyone wishing to retire a decade or so from now.

10 reasons why this is BY FAR the best way to save for retirement

10 reasons why this is BY FAR the best way to save for retirement

Is there a single best way to build your wealth so you can retire with dignity? Yes, there is, despite costs and limitations.

Why you need a pension fund (or retirement annuity) even if you own a house

Why you need a pension fund (or retirement annuity) even if you own a house

Many people falsely believe they do not have to save for retirement because they own the home they live in.

4 beliefs about shares that keep you from growing wealthy

4 beliefs about shares that keep you from growing wealthy

4 popular, yet patently false, beliefs about stock market investing that's holding you back.

Popular articles
Home Affairs to follow up on special dispensation permit for Zimbabweans in SA

Home Affairs to follow up on special dispensation permit for Zimbabweans in SA

Home Affairs Minister Hlengiwe Mkhize says her department will respond to all Zimbabweans under special dispensation.

702 opens Walk the Talk entries, welcomes new sponsor MTN SA

702 opens Walk the Talk entries, welcomes new sponsor MTN SA

702 has officially launched The MTN Walk the Talk with 702 for 2017, and the 15-year event is getting better and bigger.

Getting to know MP, Dr Makhosi Khoza

Getting to know MP, Dr Makhosi Khoza

Dr Khoza is admired by South Africans for her role in the SABC inquiry as a ANC member of parliament.

Earn peanuts? How to best invest very small amounts...

Earn peanuts? How to best invest very small amounts...

Got a spare R200 or R300 a month? Here’s how to make that money work hard and grow…

Meet the founder of Capitec Bank, named ‘Best Bank on Earth and Cheapest in SA’

Meet the founder of Capitec Bank, named ‘Best Bank on Earth and Cheapest in SA’

Michiel le Roux speaks about the fascinating story behind the little bank that has the Big 4 shaking in their boots.

3 easy questions could bag you R2000!

3 easy questions could bag you R2000!

WIN R2000! But only if you can prove you're a whiz of the MTN Biz Quiz by answering the following three questions...

Blesserfinder: Matching you with a sugar daddy near you

Blesserfinder: Matching you with a sugar daddy near you

Is social trend Blesserfinder, where girls are allegedly matching up with rich 'benefactors' in exchange for sex, a real thing?