DStv, gym and medical aid: here are the things South Africans are giving up to make ends meet

Gym membership, DStv subscription and medical aid are some of the things South Africans are giving up as they try to make ends meet, according to a survey. 

Online research company InfoQuest conducted a survey asking 300 nationally-representative consumers what policies or contracts they cancelled over the past six months due to the ailing economy. The research was conducted in May.

Almost a quarter, 23%, of participant said they cancelled their gym membership over the past months, while 18% cancelled their DStv subscription.

Ten percent cancelled their household contents insurance,  followed by funeral policies (9%) and medical aid (9%). 

Younger consumers aged between 18 and 35 were more likely to cancel household insurance and medical aid, while the 25-34 age group was more likely to cancel funeral policies, according to the survey.

“The tough economic conditions are resulting in some consumers cancelling their precautionary savings products such as insurance, medical aid and funeral policies.

“While it may be tempting to cancel personal insurance policies to save money, it is important to recognise the potential risks and consequences,” InfoQuest operations director Claire Heckrath said.

“It is crucial to carefully evaluate the potential risks, consult professionals and make informed decisions based on individual circumstances.”

According to PE Express, FNB estimates middle-income South Africans spend up to 80% of their salary within five days.

According to Raj Makanjee, CEO of FNB Retail, this indicates the average consumer is stretched financially.

This week, Statistic South Africa reported the milk, eggs and cheese products group recorded its highest annual price increases in 14 years, while vegetable prices recorded the highest annual price hike in 15 years.

On average, vegetables were 23.1% more expensive in April 2023 compared with April 2022.

Products pushing up the rate include onions (52.8%), carrots (29.8%), peppers (25.0%) and potatoes (24.4%). 

The milk, eggs and cheese products group recorded an annual price increase of 14.5%.

The average price of a 2l carton of fresh full-cream milk increased from R30.14 to R35.88 in the 12 months to April. Over the same period, the average price of a kilogramme of cheddar cheese climbed from R118.24 to R135.11 and a tray of six eggs from R20.38 to R21.59.

The average household food basket cost R4,966 in March, according to research organisation Pietermaritzburg Economic Justice and Dignity (PMBEJD). This was an increase of R516 compared with March 2022. 

The organisation, which tracks food price data from 44 supermarkets and 30 butcheries in Johannesburg, Pietermaritzburg, Durban, Cape Town and Springbok, found prices of potatoes increased by 8%, tomatoes by 6% and carrots by 23%. 

The Household Affordability Index report, compiled by the group, showed food prices increased by R461.02 (10.6%) from R4,542.93 to R5,023.95 in one year.

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