The average South African has net assets of US$11,040 (R137,000) at the end of 2014, according to data from New World Wealth.
Net assets, or your net worth, includes everything you own of significance held against your debts. NWW said that for the purpose of it’s research, net assets exclude the value of an individual’s primary residence, but include all other – retirement savings, stocks etc.
The group said that the country is well below a global average of US$27,600 (R342,700).
South African locals held US$585 billion in net assets (or wealth) at the end of 2014, New World Wealth said.
BankservAfrica recently noted through its Disposable Salary Index (BDSI) that the average disposable salary in SA is approximately R11,700, however, more than 55% of the working population earns less than R10,000.
Neil Roets, CEO of debt management company Debt Rescue recently told BusinessTech that the average applicant for debt rescue has 14 unsecured accounts, one vehicle, and one property.
The average age of an applicant is ‘early forties’ with the bulk between 35 and 45.
The average total debt exposure is as follows:
- Clients with mortgages : R950 000
- Clients without mortgages : R240 000
At the end of 2014, there were approximately 46,800 high net worth individuals (HNWIs) living in South Africa, with a combined wealth of US$184 billion.
HNWIs are defined as people who have a net worth of US$1 million or more.
This equates to roughly 31% of South Africa’s total individual wealth.