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89% of South Africans spending all income or more than they earned

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89% of South Africans spending all income or more than they earned

A new survey by accounting firm Deloitte revealed that the personal financial damage of South Africans had been made worse by the pandemic.

The survey revealed that seven out of every 10 South Africans were spending all of their income or more income than they had every month.

The firm ran a series of online research panels every month for the past six months, consisting of a minimum of 1,000 consumers over the age of 18.

Amongst the cohort of people surveyed, financial wellbeing and job security were their main concerns.

Deloitte Africa’s Rodger George said that 45% of participants, particularly those between

the ages of 35 and 54-years-old, were worried about being able to make the next big

payment at the end of the month.

“As COVID-19 keeps going and drags on and prolongs itself, you can see that people are

becoming more and more concerned about their financial position and as a result of that,

they’re delaying big-ticket spend items, so 55% of people are saying we’re ‘gonna delay a

big spend of big-ticket purchase until COVID-19 is over.'”

George said that around four in 10 people surveyed said that they were spending above their income levels.

“A further 29% of people are saying we’re spending everything we earn,

so if you add the two up that’s 70% of people are either spending everything or more than they actually earn,

which is quite worrying. Despite the COVID-peak that spend pattern remains,

so when the COVID peak happened or not, we’re still spending everything we got or more

and if you look at the global average, only 20% of global people are spending above their income levels.”

Fifty-five percent of South Africans felt safe to visit stores.

Deloitte’s online “state of the consumer tracker” featured consumer behaviour data from

18 countries, including Australia, Canada, France and the United States.

 

financial damage