South Africa, a country for old people?
South Africa, a country for old people?
17 Aug 2021
Young people are extremely worried about their financial future.?And in?South Africa?more than?57% remain unemployed, with that figure only growing as a result of the Covid-19 pandemic.
Gen Z Unemployment
There are more than 2 billion people in the Generation Z age range globally. These individuals, born between 1997 and 2009, represent about 30% of the total global population—and it’s predicted that by 2025, Gen Z will make up about 27% of the workforce.
According to Visual Capitalist, unemployment has been on the rise across the board —but Gen Z has been hit the hardest.
This chart, using data from the?OECD, displays the difference between the unemployment rate for Gen Zers and the rate for older generations.
Click here?to view larger image.?
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Inter-generational inequity
Stricter calls are being made for environmental policies, financial safeguards, increased access to technology and investment in programmes to support more young people becoming influential policy-maker. This is according to a Youth-Driven Recovery Plan, drafted by the World Economic Forum’s Global Shapers Community.
The recovery plan dialogues engaged more than 2 million people and generated 40 policy recommendations through surveys and workshops in 150 cities and over 180 countries run by young people. It forms what is believed to be the world’s most geographically diverse forum, aimed at ending inter-generational inequity.
Almost half of the young people surveyed said they feel inadequately skilled and close to a quarter said they would risk falling into debt if faced with an unexpected medical expense.
Poor inroads to long-term financial stability
In South Africa, market related data shows that “the age profile of home owners has shifted towards the older population – under 40s account for just 15% of properties owned today, down from 22%. The trends has been note across all price-bands of the market, from affordable to higher value properties.
An alarming statistic by any means, considering that owning property is one of the surest ways of securing future wealth and long-term financial stability, says Adrian Goslett, Regional Director and CEO of RE/MAX of?Southern Africa.
SA ranks low in?Global Youth Development Index
Painting an even gloomier picture for younger buyers who hope to enter the property market, is South Africa’s poor showing in the 2020?Global Youth Development Index, which measures the status of young people in 181 countries around the world.
South Africa is ranked 131st.?
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While the survey reveals that the conditions of young people have improved around the world by 3.1 per cent between 2010 and 2018, progress remains slow.
Singapore ranked top for the first time?followed by Slovenia, Norway, Malta and Denmark. Chad, the Central African Republic, South Sudan, Afghanistan and Niger came last respectively.
Global trends
Overall, the index shows levels of underemployed youth and those not in school, training or work remained constant. Advances in equality and inclusion are led by improved gender parity in literacy as well as fewer child marriage cases and pregnancies in girls under 20. Yet no progress occurred in women’s safety.
Health made the largest gains of 4.39 per cent driven by a 1.6 per cent decline in global youth mortality rates and a 2 per cent drop in each HIV, self-harm, alcohol abuse and tobacco use. Sub-Saharan Africa made the greatest strides in improving the health of young people.
Crisis in Politics
Young people believe we have a serious crisis in politics. They believe that the fractures that have come to bear in society are manifestations of an underlying political problem.
The Youth Recovery plan notes concerns about corruption and stale political leadership have become urgent priorities for young people if they are to keep faith in the political system.
The survey found that young people would be more likely to trust a system run by artificial intelligence than humans. To fix the problem, they are calling for greater investment in programmes that help young progressive voices join government and become influential policy-makers.
An empowered generation
While the data used to compile the index was gathered before the COVID-19 pandemic, the findings indicate where progress was being achieved and where it was not.?
Among its recommendations, the GYD index calls for more investment in lifelong digital skilling of young people, mental health services, apprenticeships, road safety and youth participation in decision-making to reverse trends which adversely impact them.
It further urges governments to improve data collection on education and diversify how they measure digital skills and online engagement of youth.
“As we work to recover and rebuild from the many consequences of the pandemic, we need to draw as fully as possible on the energy and idealism of youth so that fresh opportunities for social, economic and political development are opened up with present and future generations of young people equipped and empowered to fulfil their potential,” Says Commonwealth Secretary-General The Rt Hon Patricia Scotland QC.
Improved chance of homeownership?
Speak to a financial planner, a bond originator, and a real estate professional sooner rather than later. Together, these professionals can help young buyers create a plan of action or, at the very least, provide a better idea of what it will take for them to enter the property market,” suggests Goslett.??
While there are external factors out of young buyers’ control, such as high levels of youth unemployment and a lack of affordable housing developments, there are some factors entirely within their control, such as setting up savings from their first paycheck and remaining vigilant about their credit score.
“South Africans are notoriously bad at saving their money. Those who want to enter the property market before their 40th birthday will need to practice the self-discipline to save for their future, most likely by sacrificing on immediate pleasures and cutting back on living expenses wherever possible,” suggests Goslett.
Beyond this, Goslett cautions young buyers to watch their credit score so that they do not get themselves blacklisted.
“The better your credit score, the better your chances are for securing home finance. Financial institutions will also offer buyers a lower interest rate on the home loan if they have a favourable credit score. To keep your credit score in check, be sure to make all credit repayments in full before the due date and try to keep the amount of debt to your name as low as possible.”
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