Savings Month is the South African Savings Institute’s national savings awareness campaign. The campaign serves as a helpful reminder to us all to revise the health of our savings.
Personal Savings in South Africa averaged 4.55 percent from 1960 until 2022, reaching an all-time high of 23.80 percent in the second quarter of 1972 and a record low of -2.40 percent in the fourth quarter of 2007. According to Stats SA, the Household Saving Rate decreased to 0.30 percent in the first quarter of 2022 from 0.70 percent in the fourth quarter of 2021 – and is expected to be 0.60 percent by the end of this quarter.
South Africans are not saving enough. The number of middle-income South Africans who enter the world of savings has not grown much, and the impacts from the covid pandemic, rising inflation and rising interest rates are not helping the cause.
The good news is that it is never too late to start saving. Whether it is for retirement, a personal goal or leaving a legacy.
In the below video Sasfin’s Head of Advice, Johan Gouws, discusses the topic of saving for retirement with Bongiwe Momoza, Senior Asset Consultant at Sasfin.