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.
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