Take-home pay: not what it seems

Ups, downs due to swings caused by largest employer delaying increases.

Ups and downs due to swings caused by SA’s largest employer delaying salary increases.

The total take-home wages and car sales have a very close relationship. Both time series are smoothed on a threemonth basis but it appears that anticipations of a salary hike already leads to car sales.

When salary hikes are low, cars sales are also low although with about a one-month lead.

It already seems likely that new car sales will remain subdued as take-home wages are unlikely to have above average increases.

Private pension increase yet again

The BankservAfrica Private Pension Index (BPPI) shows the average amount of private pension has increased for a record breaking 30 consecutive months. The long period of increases is an incredible feat in the face of a lacklustre equity market performance.

However, with interest rates still relatively positive, one is hopeful that pensioners are not using up their savings too quickly.

However, older data from the Financial Service Conduct Authority shows that the withdrawal benefits of pension funds is now more extensive than the contributions made, and continues to grow substantially.

Combined change in income banked

The combined change in earnings deposited from pensions and salaries shows a remarkable relaSA’s tionship with the change in South Africa retail sales (retail sales exclude eating out and motor vehicle sales).

As can be seen in graph 2, the total salaries and pensions below R100 000 per month combined show a relationship with the retail sales.

So the small traffic and earnings deposited are very closely related.