How SA millionaires get rich
New research into South Africa’s super-rich reveals that they are far wealthier than previously thought.
TopEnd 2013, the second survey into SA’s economic upper echelon from RamsayMedia Research Solutions (RMRS), tapped into 1.6 million top-earning households – those with a monthly household income of at least R30,000.
The survey found that almost 10% of SA’s “economic astronauts” have a household income of R500,000 or more a month, while 36% earn in excess of R200,000 a month.
Their level of income has allowed them to accumulate substantial assets: the average value of their fixed property is R6.2 million; 42% own more than one residential property (3% own six or more); and their average share portfolio is worth R2.6 million.
Of these, the researchers identified the 5% at the very tip of the wealth pyramid, some 80,000 individuals with a monthly household income in excess of R100,000 – enough to fill the stands and the field at Loftus Versfeld stadium.
Among these, the total TopEnd group shows a leaning towards entrepreneurial activity – but when it comes to the ultra-rich, as many as 73% are employed in a company, with only 20% ticking the self-employed box.
SA’s millionaires haven’t got rich on their own, they are corporate climbers, RMRS said.
The research notes that financial wisdom is key to this segment of the market; as 40% have some kind of sideline income in addition to their corporate jobs, with 59% earning monthly income from their investments.
“As time passes, we can expect to see a few things happen to this segment, notably a slow and steady shift in the 76:11 ratio of white to black millionaires,” said RMRS partner, Alan Todd.
“But it’s important to remember, that will represent an expansion of the segment rather than one group diminishing – once you’re in orbit, you really have to mess up spectacularly to come back down to earth.”
“In that respect, the fact that 70% of millionaires feel they are much better off now than they were five years ago speaks volumes for the onward and upward march of South Africa’s most affluent consumers,” Todd said.
The TopEnd 2013 Survey was conducted in partnership with Caxton, Edcon, DStv, Pick n Pay, Nandos, YFM, Toyota, Lexus and Sanlam. Their combined customer base allowed RMRS to reach a record 49,000 respondents.
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