Tag: disposable income

South Africans are significantly indebted, with a large portion of their monthly income going toward servicing debt. This means that for every R100 of disposable income, South Africans currently owe R62.70. We’ve observed a combination of high interest rates, rising living costs and slow income growth driving the high levels of indebtedness.

South Africa’s economic landscape is challenging even the most resilient consumers. In recent years, high inflation and soaring interest rates have taken a toll. At the same time, stagnant economic growth, rising fuel prices and a weaker rand are putting tremendous pressure on household finances.

Retail discounters show double-digit growth while e-commerce continues its surge. Our new grocery retail data reveals key shifts in South Africa’s FMCG retail landscape, with discounter and e-commerce formats outperforming other channels in 2024. Despite easing inflation, South African shoppers remain under economic pressure, leading to changing missions, increased cross-channel behaviour and format diversification among major retailers.

The National Minimum Wage (NMW) in South Africa has risen to R28.79 per hour, effective 1 March 2025. This 4.38% increase from the previous rate of R27.58 reflects the government’s commitment to improving workers' livelihoods. However, it also poses significant challenges for businesses, especially Small and Medium Enterprises (SMEs), which are already grappling with a rising cost of living alongside a sluggish economy.

The economic reality in South Africa today leaves many middle-class households grappling with mounting expenses. They also face dwindling disposable income, which makes successful retirement savings increasingly difficult. In addition, there is a persistent inability to save for retirement.

As the festive season approaches, the excitement of Christmas shopping is in the air. However, amidst the holiday rush, it is crucial to stay vigilant to avoid a nasty surprise of unexpectedly purchasing counterfeit products, which invariably flood the on and offline markets during this time.

From 1 September 2024 South Africans with retirement funds have the option to participate in South Africa’s two component retirement system. Qualifying consumers with tax directives will be able to access approximately R100 billion in retirement savings.

If you’re saving for your retirement, both retirement annuities (RAs) and tax-free investments (TFIs) are good investment choices. But which one offers the best tax benefits? The answer depends on your investment goals and unique circumstances. While there are tax benefits associated with both RAs and TFIs, the benefits are structured differently, and the product rules and restrictions are quite distinct.

Black Friday has come and gone, and with the current state of our economy we’ve seen a significant change in consumer behaviour. This years Black Friday has some clearly defined changes such as how consumers chose to make their purchases, the platforms they used to make them as well as how much they chose to spend.

In recent years, South Africa has embraced the global phenomenon of Black Friday. While, for businesses in this country, it's tempting to focus solely on the immediate potential that this flurry of buying activity presents, small and medium enterprise (SME) should take a much longer-term view of Black Friday, understanding its real potential to underpin long-term growth.