iAfrica 4 months ago 2 min read
Share with your network!
Retired South African wealth investors are no longer concerned with purchasing luxury goods, such as holidays or new cars. Focus on investing toward these items has plummeted in recent years, from 28% in 2017 to just 4% today. Instead, 28% of local retirees would now rather invest their disposable income back into their retirement savings – up from 23% three years ago. A further 25% would invest in another type of investment vehicle such as equities, bonds or commodities.
This was revealed in the recently released Schroders’ Global Investor Study 2020
[1] – an annual survey of more than 23,000 wealth
[2] investors, conducted across 32 locations around the world between 30 April and 15 June 2020.
The last time Schroders asked retirees where they spent their money, 13% said on on luxury items in 2017 but this is now down to 6%.
Photo: Getty Images.
The luxury goods industry in South Africa is in trouble. Retirees, the people who usually have money to splurge aren t doing so anymore, thanks to Covid-19.
According to the recently released Schroders’ Global Investor Study 2020, the country s wealth investors are no longer interested in buying luxury goods, such as holidays or new cars. Instead, retirees are choosing to sit on their money and reinvest it, whether on their existing pension or other investment products or leave it with the bank.