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:


This article first appeared on CapeTalk : SA households lost nearly half a trillion rand in 2018 - survey


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
Eskom has 30 days to respond to our demands - EFF

Eskom has 30 days to respond to our demands - EFF

EFF leader Julius Malema handed over a memorandum to CEO Andre de Ruyter after a march to the Eskom headquarters in Sunninghill.

BE WARNED: Heavy traffic set to hit Nasrec on Saturday due to derby, festival

BE WARNED: Heavy traffic set to hit Nasrec on Saturday due to derby, festival

Johannesburg Metro Police's Wayne Minnar suggests alternate routes for music festival goers and soccer fans.

'SA is certainly one of best prepared countries in our region for coronavirus'

'SA is certainly one of best prepared countries in our region for coronavirus'

South African Health Products Authority chairperson Helen Rees they have done their best to train healthcare professionals.

EFF reach Megwatt Park despite heavy downpours

EFF reach Megwatt Park despite heavy downpours

Eyewitness News Edwin Ntshidi says members of the Economic Freedom Fighters were to hand over their memorandum.

[VIDEOs] Heavy rains cause havoc on roads

[VIDEOs] Heavy rains cause havoc on roads

Motorists share videos on Twitter about heavy traffic and floods on the roads.

[WATCH] The Soil back in studio and working on new music

[WATCH] The Soil back in studio and working on new music

Two members of the group joined Azania Mosaka for this week's 702 Unplugged ahead of their concert at Silverstar Casino Ballroom.

Pearl Thusi: The fact that we are in charge of the narrative is very important

Pearl Thusi: The fact that we are in charge of the narrative is very important

The actress says what is really powerful for her about the new show 'Queen Sono' is that the entire ark is driven by women.

SA citizens repatriation: 'We have no idea when Wuhan lockdown will be lifted'

SA citizens repatriation: 'We have no idea when Wuhan lockdown will be lifted'

Department of Health acting director-general Dr Anban Pillay explains why it was necessary to have South Africans returned.

Mandisa Mashego cagey on her talks with EFF leadership over 'internal matters'

Mandisa Mashego cagey on her talks with EFF leadership over 'internal matters'

The Economic Freedom Fighters’ (EFF) Gauteng chairperson Mandisa Mashego was reacting reports and speculation that she had recently resigned as the party's Gauteng chairperson over tensions within the party.

 Adam Catzavelos hit with R50k fine for racist remarks

Adam Catzavelos hit with R50k fine for racist remarks

Should he commit another crimen injuria crime, Catzavelos would need to pay the fine or go to jail.