Today's Labour News

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newsBusinessLive reports that 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.  

An Old Mutual Unit Trust survey of South African millennials — or those born between 1981 and 1996 — found that only 44% were investing in pension or provident funds, compared with 61% saving money in a bank account.  These conclusions fit with global surveys that have concluded that millennials are good at saving but less likely to invest.  This reflects a trend analysts say is putting increasing pressure on the fees that asset managers are able to charge because millennial investors are more savvy and aware of fee structures.  10X Investments senior investment analyst Chris Eddy commented that the short-term approach taken by younger investors was counterintuitive as they should be investing in riskier assets that offered higher rewards over the long term.  The saving strategies of millennials were less likely to allow for compounding returns of savings, noted Old Mutual Investment Group MD Khaya Gobodo.  South Africans are consistently ranked as being among the worst savers and most indebted consumers in the world.

  • Read this report by Karl Gernetzky in full at BusinessLive

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