Saving & investing choices of the SA consumer class

South Africa’s national savings month arrives this July, in another year with the economy still grinding in low gear and unrelenting global uncertainties. For those managing to save and invest, the challenge is staying the course to ensure long-term financial health.

According to the BrandMapp 2024 dataset, 80% of the country’s consumer class has savings and/or investments. The annual survey describes the 13.5 million South African adults living in households with a R10k+ monthly income, covering 100% of the taxpayer base.

Brandon de Kock, BrandMapp’s Director of Storytelling says, “In many ways, the savings journeys we have mapped are what you would typically expect of the educated, employed mass market at their different stages of life. Your savings and investments are all about your financial capabilities. And so, it’s not surprising that the younger generations, just setting out on the journey, have simpler portfolios, while those of the older generations are more diverse and sophisticated.”

Cash, saved in the bank, is king for SA taxpayers
When it comes to deciding how to save, the most popular choice is banked savings. 30% of the consumer class have money in the bank that is kept aside from their monthly cashflow. It’s appealing to both young and old, with 32% of Gen Z and 35% of Boomers opting for banked savings. De Kock says, “This is interesting if you are an investment house because it means that money in the bank is your biggest competitor. Perhaps, this is just a natural human response to the current upheavals in markets, and a reflection of today’s high level of consumer uncertainty. It’s the financial equivalent of food in the freezer!”

Burial schemes (28%), pension and provident funds (28%) and retirement annuities (24%) are also top saving and investment channels. 18% of the consumer class have tax-free savings accounts and 10% are saving in money market accounts.

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