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Most financially vulnerable consumers earn less than R5,000 a month, are younger than 39 and are women or single, while people who work for the government are the least financially vulnerable, according to the latest Momentum-Unisa Consumer Financial Vulnerability Index (CFVI) for the first quarter of 2021.
While the index found that financial vulnerability was prevalent in all income groups:
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They also regarded the following groups as most vulnerable:
While 31.7% of the respondents expect that the financial position of consumers will improve in the second quarter of 2021, 80.2% expect that it will take 18 months or longer for consumer finances to recover.
They also noted a significant drop over the past year in the level of control that consumers have over their lives and circumstances. This contributed to consumers adjusting their financial behaviour, searching for additional income generating opportunities and empowering themselves with appropriate skills.
The respondents are researchers, bankers, insurers, retailers, government officials, economists and analysts who deal with consumers daily.
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