Invest now for your retirement, youth warned

YOUNG people in South Africa are better at saving than previous generations, but they aren’t investing, a study by Old Mutual has revealed.

Young people, or Millennials — those typically aged between the ages 18 and 34 — were failing to invest for the long term, according to research by Old Mutual Unit Trusts.

The study looked at the financial behaviour of employed Millennials and found that, while seven out of 10 Millennials have a savings account, only four in 10 are investing in pension or provident funds. With life expectancy now at 114 years, according to research by Britannica, the failure to invest could potentially be catastrophic for young people in future.

Proceed to Source : News24

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Old Mutual launches new rewards programme – all the details

Financial services company Old Mutual has announced the launch of its customer loyalty programme – Old Mutual Rewards.

Consumers can earn rewards points for building financial knowledge and making sensible financial decisions, Old Mutual said in a statement on Monday (16 July).

Point earning activities include completing financial assessments, using online calculators like the education savings or debt repayment calculators, and completing education modules on Moneyversity, Old Mutual’s online financial education hub.

Proceed to Source : Business Tech

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Old Mutual’s 2018 South Africa Crypto Survey Shows 38% Wish They Invested

African financial service giant Old Mutual just released the 2018 Savings and Investment Monitor survey for South Africa. The study shows that 38% of the residents and citizens of Africa’s second-biggest economy who were already aware of the existence of digital assets wished they had put their money in cryptocurrencies.

Old Mutual Limited is a pan-African investment, savings, insurance, and banking group. Established in 1845 in South Africa, it had more than 12 million customers and ZAR1.2 trillion funds under management as of 31 December 2017. It is listed on the Johannesburg Stock Exchange, Zimbabwe, Malawi, Namibia and London Stock Exchanges.

Proceed to Source : BitcoinExchangeGuide

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Big funds fight fat-cat salaries

Four of the largest local fund managers have fought against the excessive pay of executives of JSE-listed companies through voting on remuneration resolutions at shareholder meetings and meetings with the boards of these companies.

A PwC report on executive director remuneration this week revealed the voting patterns of six of these funds when its comes to JSE-listed company remuneration policies in the period from September 1 last year to May 6 this year.

The Public Investment Corporation voted against 44.9% of such remuneration policies, Old Mutual (37%), Allan Gray (28.6%) and Coronation Fund Managers (20.9%).

Proceed to Source : Fin24

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Nest eggs crack under economic strain

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As living expenses such as food and fuel rise, so has the proportion of income we spend on these consumables, putting the squeeze on our ability to save and service debt, a survey reveals.

Savings as a percentage of household spending have been declining since 2013, when they represented on average 20% of household spend compared with 14% this past year.

The latest Old Mutual Savings and Investment Monitor results, released this week, reveal that households are spending 67% of their household income on living expenses compared with 62% the previous year.

Fourteen percent is being saved, 13% is spent on servicing debt and 6% goes towards insurance and medical schemes.

Savings (pension funds, education policies, and so on), as well as insurance and medical scheme costs, have been cut back by a percentage point each, while debt servicing has to 13% of income from 16% last year.

Proceed to Source : Business Live

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The Old Mutual Savings and Investment Monitor 2018

National Savings Month is in July each year and we are proud of our efforts to support the national drive to strengthen South Africa’s savings culture. The improvement of savings in our country is one of the major social-economic challenges facing us as a society. As a market leader, Old Mutual remains committed to provide expert financial advice and innovative solutions to our customers. In times of economic uncertainty, it’s important for people to seek trustworthy guidance, and to be equipped with the appropriate advice and tools to help them realise their goals and dreams.

Proceed to the Old Mutual Savings and Investment Monitor 2018

How many South Africans still think Bitcoin is a bad idea – and those that wish they had invested

Old Mutual has released its 2018 Savings & Investment Monitor, focusing on the finance habits of every day South Africans.

The report is based on more than 1,000 face to face interviews, from 26 April – 26 May 2018, which were weighted to be representative of the South African working metro population.

Proceed to Source : BusinessTech

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It’s going to become harder to save money in South Africa

South Africans still aren’t saving enough – and current economic conditions in the country mean that it is only going to get more difficult to save for the future.

This is according to Old Mutual Investment Group Economic Strategist, Rian le Roux, who said that the stagnant economy, with rising dependency ratios, means that saving for the long term is becoming ever more challenging.

He added that South Africa’s economic growth remains weak and this is cementing many of the country’s economic and social problems.

“The economic contraction in Quarter 1 of 2018 was a huge shock and there is no evidence of any material improvement in the second quarter,” he explained. “The consensus GDP forecast for 2017 is 1.5%, with the past five year average growth being 1.3% and a potential growth figure of 1.3% too,” he said.

“In the absence of a higher actual and potential growth pace, it is going to be extremely hard to consolidate the fiscal situation, with sustained weak tax revenue growth amidst heavy spending pressure. This will entrench weak investment and growth in the country as savings will remain depressed.”

Proceed to Source : Business Tech

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The assets which had the highest returns in South Africa over the last 10 years

Old Mutual has published a new report focusing on asset class returns in South Africa over the last 10 years.

The report – which is based on monthly updated data – reflects average returns from local asset classes, as well as inflation and global equity.

Taking May 2008 as a starting point, Old Mutual found that South African real estate had significant higher returns compared to the other major classes over this time period.

The other asset classes were relatively similar in their returns however, with a diversified* portfolio, South African bonds, and foreign equity seeing the next highest returns.

Proceed to Source : BusinessTech

Millennials ‘not investing in pension funds’

Less than half of millennials are saving for retirement through pension or provident funds, with shifting perceptions by younger investors offering both opportunities and difficulties for financial services companies, according to research conducted by Old Mutual Unit Trusts.

Old Mutual’s survey suggests millennials are saving but not investing, reflecting a trend analysts say is putting increasing pressure on the fees that asset managers are able to charge.

It may also prompt consolidation within the financial services sector.

Proceed to Source : Business Day

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